Grieg Seafood (Buy, TP: NOK140.00) - Finnmark weighs on Q1 results
The headline Q1 results were in line with the 17th March profit warning, while the poor underlying results reflected the downgrade of 50% of Grieg Seafood’s fish in Finnmark, which affected prices and costs (management guided this would also weigh in Q2). We have cut our 2020–2022e EPS by 26.3–1.5%, leaving us in line with consensus for 2020e, but well above for 2021–2022e. We have trimmed our target price to NOK140 (145) following our estimate changes, but with the stock trading at <14x reported 2019 EPS and <8x on 2021e, we reiterate our BUY.Greig Seafood is a fish farming group, based in Norway, that specialized in salmon and trout. Co. is the parent company of the Greig Seafood Group. Co. is engaged in the production and sale of seafood, and naturally related activities to the sale of seafood. Co. is predominately engaged in the production of farmed salmon and trout, with a production capacity of around 95,00 tons gutted weight annually. Co. has 100 licences for salmon production and five licences for smolt production. Co. has operations in Finnmark and Rogaland in Norway, British Columbia in Canada, and Shetland (the U.K.).
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.