Arctic Securities cuts the price target by 80 percent in Atlantic Sapphire

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Could run out of cash within a year.

It has been a profitable corporate customer. Arctic Securities has been central to raising money for Atlantic Sapphire, while several brokers have been loaded with shares in the farming company.

Also read: Arctic brokers are heavily invested in Atlantic Sapphire. Authorities are now investigating

Patience is wearing thin now.

The price target on Atlantic Sapphire has been hammered down to NOK seven, from NOK 35, and the recommendation on the share is downgraded to hold from buy. The brokerage lowers EBITDA estimates for 2022 by $15 million (€15.3 million) due to higher-than-normal mortality, TDN Direkt wrote.

“The company has sufficient cash until around the third quarter of 2023, when access to additional debt is necessary. This may be realistic if the budget is adhered to, but operational and biological risk has increased in our view, and there is a need to restore confidence,” the investment bank stated in an update.

SalmonBusiness wrote earlier today that Atlantic Sapphire’s share price has fallen 97 percent from its peak a year and a half ago. No analyst saw this coming.

Now analysts are singing a different tune.

Of nine investment banks that have coverage, only DNB Markets now recommends buying Atlantic Sapphire’s share, according to Bloomberg.


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