Grieg Seafood (Buy, TP: NOK162.00) - Norway above, outside below
Q4 operational EBIT of NOK357m was c8% below our estimate, but 2% above consensus. While Norway’s results were impressive, Shetland continued to lag behind our expectations for costs. The company guides for rather high costs for Q1 and for 2020, only 3–4% global supply growth but with favourable demand. To reflect the slower recovery outside Norway, we have reduced our 2020e EPS by 2.6% and our target price to NOK162 (168). We reiterate our BUY recommendation.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.
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