Lerøy Seafood (Buy, TP: NOK55.00) - Good progress
Q2 operating EBIT was NOK906m, 5% below our estimate and 3% below consensus, mainly driven by a miss in Wildcatch. Farming EBIT was in line for Midt, with small misses for Aurora and Sjøtroll. VAP had a strong Q2 (36% above consensus), with the 3.0% margin among the strongest in recent years. Management comments were forward-leaning, with shielding technology yielding very good results in H1. The 2024–2025 harvest guidance was unchanged at 175–200kt (consensus: 168–181kt). We expect only marginal changes to consensus 2024e EPS, but the stock up 1–3% on the reported operational progress.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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