Report
Niclas Gehin
EUR 87.40 For Business Accounts Only

Yara (Buy, TP: NOK450.00) - Stable earner in volatile markets

We expect Q4 EPS of USD0.76, driven by a volume uplift YOY, and somewhat higher nitrate prices, largely offset by higher energy costs (results due at 08:00 CET on 9 February). We forecast an ordinary 2020 DPS of USD1.5, and, later this year, an extraordinary DPS of USD2.9 and a buyback programme of USD1.9/share. We continue to find Yara attractively valued, trading at a 2021e P/E of 12x, and with a stable earnings base and solid dividend prospects, we reiterate our BUY and NOK450 target price.
Underlying
Yara International ASA

Yara International is a holding company. Through its subsidiaries, Co. converts energy, natural minerals and nitrogen from the air into products for farmers and industrial customers. Co. provides mineral fertilizers, industrial products and environmental products and services to its customers. Its mineral fertilizer portfolio, sold as five main brands (YaraMila, YaraLiva, YaraVita, YaraBela, YaraVera) represents a range of crop nutrients. Its industrial portfolio contains a range of nitrogen chemicals as well as CO2 and dry ice. Its environmental product and services reduce NOx emissions, control unpleasant odor, prevent toxic gases, avoid corrosion and improve water quality.

Provider
DnB Markets
DnB Markets

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.

 

Analysts
Niclas Gehin

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