Handelsbanken has reiterated its Buy recommendation for AAK while nudging its target price up to SEK 303 from the previous SEK 300.
AAK, a specialist producer of plant-based ingredients, is expected by analysts to post a solid first quarter with operating profit projected at approximately SEK 1,249 million. This performance comes despite currency headwinds stemming from a weaker US dollar.
The results are supported by strong momentum in specialty fats and the ongoing "Fit to Win" efficiency program.
The bank's full-year forecast remains unchanged, with EBIT projected at roughly SEK 5,270 million and volumes around 2.03 million tonnes. A share buyback program totaling SEK 3,000 million over three years, alongside dividend payouts, further strengthens the investment case.
AAK AB (publ), formerly AarhusKarlshamn AB (publ), is a Sweden-based company engaged in the food processing sector. The Company refines vegetable oils for specialized products. The Company is organized, along with its subsidiaries, into three business segments: the Food Ingredients segment includes baking fat, dairy fat alternatives, Ice cream fats, infant formulas and oil/fats ingredients, among others; the Chocolate & Confectionery Fats segment provides chocolate and confectionery advantages, ranging from products developed for better sensory, health and longer shelf life to cost efficiency, know-how, technology and service, and the Technical Products & Feed segment includes golden wax, fatty acids, glycerin, deinking chemicals and animal feed.
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