Arctic Securities has reiterated its Buy recommendation and NOK 39 price target on Andfjord Salmon ahead of the company’s first commercial fish sale.
The investment bank expects Andfjord to generate approximately NOK 58.5 million (€5.44 million) of revenue in the second quarter from the sale of 450,000 post-smolt to Eidsfjord Sjøfarm.
Arctic analyst Christian Olsen Nordby said fish growth has exceeded the company’s own projections, supporting expectations for the first delivery next month.
The bank estimates Andfjord has a NOK 300 million (€27.9 million) funding buffer to complete Phase 2a of its expansion programme, but will require an additional NOK 500 million (€46.5 million) to finance Phase 2b.
Arctic identified the financial results from the first post-smolt sale and harvest performance from K0 and K1 later this year as the key near-term catalysts for the share.
The firm maintained its NOK 39 target price, representing roughly 44% upside to Thursday’s closing price of NOK 27.10.
