AAK: 'Double-digit compounder' - BofA Securities starts with "buy"
28/05/2020 12:08
** BofA Securities starts the coverage of AAK AAK.ST with
a "buy" recommendation, citing the company's peer-leading
double-digit growth outlook
** AAK shares are up over 6% at 1107 GMT on Thursday and on
track for their best day in 10 years
** BofA Securities expects the Stockholm-listed vegetable
oils and fats maker to deliver 12% operating profit CAGR
(compound annual growth rate) over 2019-2025
** The brokerage says historical growth drivers remain
strong for the company, while plant-based dairy gives further
upside
** It sees premiumisation and sustainability to further
drive rising demand, being "underpinned by health & wellness, a
growing global middle class and innovation-focussed
manufacturers"
** While the company's double-digit earnings compounder seem
underappreciated by the market, BofA adds the company's stock to
its Europe best ideas list for mid-caps
((izabela.niemiec@tr.com))