Lerøy Seafood (Buy, TP: NOK52.00) - Q4 beat, but 2024e EPS cut
Q4 operating EBIT was NOK765m, 18% above our estimate and 13% above consensus on strong VAP & Sales EBIT. Management guided for higher costs and lower volumes in Q1, suggesting a back-end loaded harvest profile for the year. With a lower wild-catch cod quota and margins, we have cut our 2024–2025e EPS by 4.7–2.5%. The company proposed a 2023 DPS of NOK2.5 (11% below our forecast, 4% below consensus). We reiterate our BUY and 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.
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.