Raises this year’s price assumption by nine percent.
Investment bank DNB Markets raises its price assumptions for salmon to NOK 71 (EUR 7.1) for 2022, up from NOK 65 (EUR 6.5), and NOK 67 (EUR 6.7) for 2023-2024, up from NOK 63 (EUR 6.3). DNB Markets further expects that cost inflation will hit components in the sector, but with a lag against the spot price.
«We have increased the estimate for earnings per share in 2022 and 2023 by 8-9 per cent and reiterate our positive view of the sector. We are struggling to see where the supply growth will come from the next three to five years, given delays in new technology and stricter regulation in traditional regions”, DNB said in a new sector report on Thursday, obtained by TDN Direkt.
DNB Markets generally believes that consensus seems to be far too conservative when it comes to both salmon prices and production costs.
The investment bank highlights Lerøy Seafood, Austevoll Seafood and Grieg Seafood as its favorites in the sector.
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