Analysts react to Salmar’s announcement of reduced superior share

Editorial Staff

SalMar’s stock experienced a slight dip at the opening of the market on Thursday.

Norwegian salmon producer SalMar reported a harvest volume of 52,900 tons in the first quarter of 2024, as announced on Wednesday.

The company acknowledged that the presence of barbed-wire jellyfish attacks has led to a lower percentage of superior grade fish as well as lower average weight in Northern Norway during the quarter.

Following this announcement, SalMar’s stock experienced a slight decline at the opening of the market on Thursday, according to TDN Direkt.

Investment firm Pareto anticipates that the loss in quality and volume in the north will lead to decreased prices and increased costs, and although volumes were higher than expected, it could result in a weaker performance.

The bank foresees potential negative adjustments to their Q1 EBIT estimate by approximately 5% and for the full year 2024 estimates by around 2-3%, with some effects possibly spilling over into Q2. Despite this, they believe these issues are already accounted for in the consensus figures and maintain a ‘Buy’ rating with a target price of NOK 680 ($63.00).

Carnegie, another brokerage firm, also commented on the jellyfish challenges, indicating that these issues might extend beyond Q1, potentially affecting Q2 consensus estimates as well. However, they expect limited impact for the estimates for 2025. Overall, they view the trading update as slightly negative, foreseeing a downside risk for consensus estimates for both Q1 and Q2.

Salmar is set to publish its full report for the first quarter on May 14.


Related Articles