We downgrade the stock to Hold (Buy) and lower our target price to NOK 115 (120) following the Q1 report. Adjusted EBIT from the portfolio companies came in 3%/5% below ARCe/consensus estimates, despite only limited impact so far from the Middle East conflict, which is expected to weigh more meaningfully on results later this year. During the previous energy and inflation shock, EBIT margins fell from historically strong levels of 11–12% to around 9%, underlining Orkla’s sensitivity to input cos ....
