Lerøy Seafood (Buy, TP: NOK52.00) - Minor model adjustments
Lerøy Seafood’s Q4 trading update revealed a harvest volume of 47.5kt, above our 44.5kt estimate due to early takeout of fish in Sjøtroll following jellyfish attacks. The attacks also affected feeding days at Aurora, while Midt was largely unaffected. Harvest guidance for 2024 remains at 175kt, despite lower standing biomass into the year. Following the trading update, we have updated our estimates; our Q4e operating EBIT of NOK648m is 18% below consensus of NOK794m (the full Q4 report is due at 06:30 CET on 28 February). We do not consider these changes to be material, and we have not changed our BUY recommendation. We reiterate our NOK52 target price.Leroy Seafood Group is a supplier of seafood. Co.'s primary products are Atlantic salmon and trout. Co. reports within two main segments: Production and Sales and Distribution. The Production segment includes Co.'s activities within production and processing, mainly Atlantic salmon and trout. The subsidiaries in this segment are a main employer along the Norwegian coastline and other areas. The Sales and Distribution segment has a global reach, comprising sales, marketing, product development and distribution of both Co.'s own produced products as well as for external suppliers. Co. is also engaged in nationwide distribution of fresh fish on the Norwegian market.
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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