Grieg Seafood price targets lifted as brokers assign 50% chance of full asset sale.
Grieg Seafood’s valuation is now heavily dependent on the likelihood of a full or partial asset sale, with both DNB Carnegie and Arctic Securities assigning a 50 percent probability to such a transaction materialising, according to TDN Direkt.
DNB Carnegie downgraded its recommendation on the stock to hold from buy on Tuesday, despite raising the price target to NOK 67 ($6.43/€5.76) from NOK 64 ($6.14/€5.50). The broker reduced its forecast for 2025 operational EBIT by NOK 137 million ($13.16 million/€11.78 million) to NOK 416 million ($39.93 million/€35.78 million) following Grieg Seafood’s recent profit warning for the first half of 2025.
The upgrade in price target reflects a change in valuation methodology and an increased assumed probability of a transaction unlocking value, DNB Carnegie said.
Arctic Securities also raised its target price to NOK 60 ($5.76/€5.16) from NOK 45 ($4.32/€3.87), maintaining a hold recommendation. Arctic’s valuation now assumes a 50 percent probability of a full asset sale, valuing Rogaland and Finnmark assets at NOK 245 ($23.52/€21.07) per kg and the Newfoundland operation at NOK 1.3 billion ($124.8 million/€111.8 million).
“We assess the risk of shorting the stock as equivalent to being long, and therefore have a ‘boring’ hold recommendation,” Arctic wrote in its note. “If a transaction does not materialise before the summer, we see downside risk in the share.”
Grieg Seafood shares were trading up 0.7 percent at NOK 69.70 ($6.69/€5.99) in Oslo at midday on Tuesday.