Raises the price range sharply for 2022-2024.
Fearnley Securities highlights Mowi and Måsøval as favorites in a new sector report, while Salmon Evolution and Atlantic Sapphire are upgraded to buy. The brokerage also takes up coverage of Proximar with a buy recommendation and a price target of NOK 12 per share.
That’s what TDN Finans writes.
The investment house continues to see upside in the sector. In the broker’s view, the long-term outlook is still strong, and the spot price assumptions for 2023-2024 have been raised by 11 and 10 percent respectively to NOK 82 (€8.3) and NOK 74 (€7.5).
Based on the broker’s updated estimates, the traditional fish farmers are trading at 14-15 times EPS (earnings per share – editor’s note) in 2022-2023.
“Although earnings in 2023 will struggle to exceed 2022 as a result of lower margins from lower spot prices and increased cost inflation, we believe current pricing is attractive given the long-term outlook for the industry – where demand will exceed supply in the coming years,” it says.
Share Recommendation (previous) Price target (previous) in NOK
AUSS Buy 160 (161)
BAKKA Buy 780 (760)
GSF Buy 164 (162)
LSG Buy 93
MAS Buy 62 (59)
MOWI Buy 290 (280)
NRS Hold 250
SALM Hold 750 (720)
ANDF Buy 74 (54)
ASA Buy (Hold) 27 (45)
BFISH Buy 21 (27)
PROXI Buy 12
SALME Buy (Sell) 12 (8.5)
