Salmones Camanchaca (Sell, TP: NOK75.00) - Downside risk to consensus
Q1 operational EBIT was USD14m, in line with our estimate and consensus. However, the increased cost guidance and lowered harvest guidance have led us to reduce our EPS by 7% for 2019e, 9.5-10.7% for 2020-21e. With the guidance for a USD0.3–0.5/kg (HOG) cost increase for salmon in 2019 and a negative contribution from Coho, we believe consensus is too optimistic considering the implied price increase needed to reach market expectations. We reiterate our SELL and NOK75 target price.
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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