Grieg Seafood (Buy, TP: NOK88.00) - Potential catalysts ahead
The Q1 report led to material consensus reductions, but we believe lower exposure to the Canadian assets through a partner or full sale could unlock significant share-price value. In our view, low margins and uncertain regulations in Canada West combined with substantial ongoing investments in Canada East have weighed on the share price and taken investor focus away from a turnaround in the Norwegian operation. We reiterate our BUY and have raised our target price to NOK88 (80) on a blend of DCF and SOTP on an ‘as-is’ basis.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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