SB1 Markets has downgraded Atlantic Sapphire to “sell” from “neutral” and cut its target price to NOK 0.8 from NOK 7.5, according to a note reported by Finansavisen/TDN Direkt.
The bank cited weaker salmon price assumptions, higher farming costs and continued cash burn behind the downgrade.
SB1 Markets said it had lowered its 2026 forecasts due to weaker expected salmon prices and higher farming costs in the first half of the year. It also pushed back the assumed start of Atlantic Sapphire’s planned phase two expansion to the second half of 2027.
The revised assumptions reduce projected harvest volumes and earnings estimates for 2029 and 2030, according to the note.
“Due to continued high cash consumption, the company is difficult to value,” the analysts wrote, adding that while upside scenarios exist, they see a high probability that the main shareholder group could take full control of the company.
Atlantic Sapphire has faced a series of operational and financial setbacks at its Florida land-based salmon farming facility in recent years, including biological issues, lower harvest volumes and repeated funding requirements.