New price target is set at NOK 118. Up from earlier price target of NOK 68.
Investment bank DNB has increased their share price target of Atlantic Sapphire after the US indoor salmon farm successfully inserted eggs into its Miami facility. At the same time, DNB increased the probability that the project will be successful, from 20% to 30%.
They continue, and repeat, purchase recommendation on the stock. They have set a new price target of NOK 118* and reiterated a BUY recommendation.
In its report on Atlantic Sapphire, DNB wrote that the derisking continued following their inititition report in March 2018. Among the highlights, they point out that the financing has been completed, construction is on track and the company has put in place a strengthened management and operational team. Furthermore, the estimated price for land-based salmon has increased. The project is slightly behind schedule.
DNB recognised 30+ projects of planned land-based capacity, but which were several years behind Atlantic Sapphire.
Once the entire plant is completed, it will be able to produce 90,000 tonnes of salmon each year. It remains on course to deliver its first harvest in the third quarter of 2020.