Hope for €135 million in quarterly dividend as Marine Harvest stock price reaches all time high

Aslak Berge

But analysts are split over the stock’s further development.

After trading at NOK 188 per share Marine Harvest’s stock prices rose to a new high. The share price jump comes at the same time as the price of salmon is at the lowest of the year. On Friday, SalmonBusiness reported that salmon prices is down to the lowest levels since November 2017.

Future Expectations
But Marine Harvest isn’t trading salmon’s spot price. The stock is traded on future expectations, but also on prospects for cash dividends. Consensus among analysts following Marine Harvest is EUR 0.27 per share in dividend for the second quarter. This corresponds to a total of almost EUR 135 billion.

Marine Harvest will present its second quarter results next Wednesday – at home in Bergen, Norway. Together with competitors Lerøy Seafood Group, Grieg Seafood and Austevoll Seafood, Marine Harvest will showcase investors at Scandic Flesland Airport.

Known results
Marine Harvest announced an update in mid July of an operational operating profit of about 175 million euros in the second quarter of 2018, and a 78,500 tonne harvest volume.

Five out of ten analysts who follow the stock recommend buy/overweight, three recommend neutral, while two say underweight/sell recommendation. The average price target is NOK 184 ranging from NOK 130 to NOK 206 according to TDN Finans.

For the year as a whole, analysts expect a net profit of 1.35 euro, equivalent to NOK 13.03, per share. A stock price of NOK 188 implies a P/E (Price/Earnings ratio) of 14.4.

Next year, analysts expect Marine Harvest to report just over EUR 1 billion in net profit – or NOK 19.81 per share. This means that the 2019 result implies a P/E at a moderate 9.5.


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