Bakkafrost (Sell, TP: NOK430.00) - DKK3bn of capex in focus
Bakkafrost reported Q2 operational EBIT of DKK408m, 5–11% above consensus and our estimate (0–5% beat if adjusting for non-recurring gains), but focus was on the new 2018–2022 DKK3bn investment plan. Although we consider the investments to make sense, they imply 2018–2020e FCF yields dropping to 3.3–2.5%. We have made minor adjustments to estimates, and maintain our SELL and NOK430 target price.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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