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Investing.com - Kepler Cheuvreux upgraded Grieg Seafood ASA (OL:GSF) from Reduce to Hold on Wednesday, raising its price target to NOK74.00 from NOK48.00 following the company’s recent asset sales in Canada and Finnmark.
The seafood producer reported second-quarter EBIT on continued operations of NOK88 million, which fell below both Kepler Cheuvreux and consensus expectations. Despite the earnings miss, the focus has shifted to the company’s strategic divestments.
Grieg Seafood is selling these assets for NOK10.2 billion on a debt- and cash-free basis, with NOK340 million in working capital adjustments. Kepler Cheuvreux estimates the company will have net cash of NOK3.2 billion by the fourth quarter of 2025.
The investment firm projects a potential special dividend in the range of NOK25-35, depending on leverage considerations, as Grieg Seafood targets an equity ratio of 50%.
Following the divestments, the restructured company will consist of operations in Rogaland, an upcoming downstream facility, and headquarters, with a strategic focus on earnings quality rather than volume growth.
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