DNB Markets downgrade Marine Harvest and NRS

DNB Markets downgraded the recommendation for Marine Harvest and Norway Royal Salmon (NRS) to Neutral from Buy, indicating that upside potential has fallen below ten percent, according to an update Tuesday.

SalMar, Grieg Seafood, Austevoll Seafood and The Scottish Salmon Company provide better returns for investors, according to the investment bank.

DNB analyst Alexander Aukner is raising estimated supply growth of farmed salmon globally to 5.7 percent this year, falling to 6.5 percent in 2018 and 4.0 percent in 2019, TDN Finans writes.

More fish to the market means lower price estimates. The DNB analyst predicts salmon prices of €6.2 and €6.3/kg for 2018 and 2019 respectively.

Here are DNB Markets’ recommendations:

  • Marine Harvest – Neutral (Buy)
  • Norway Royal Salmon – Neutral (Buy)
  • Grieg Seafood – Buy
  • SalMar – Buy
  • Lerøy Seafood Group – Neutral
  • Bakkafrost – Neutral
  • Austevoll Seafood – Buy
  • The Scottish Salmon Company – Buy