Kepler Cheuvreux “careful” on Day 1 of salmon watch

Aslak Berge

Kepler Cheuvreux starts sector coverage with a careful view on stocks.

First-time salmon analyst Christian Olsen Nordby’s started his first day covering the fishery and aquaculture sector with a 184-page analysis.

Olsen Nordby landed a neutral and marginally negative recommendation in his first encounter with fish-related shares on the Oslo Stock Exchange.

“The long-term horizons for the salmon market are solid, with limited potential for growth both in Norway and Chile, mainly due to regulation, combined with strong demand from relatively new markets of high population growth. We, however, have a careful short to medium-long view with what we believe will be a solid growth build-up in Norway from the middle of 2018, and a global supply growth of approximately seven percent,” the analyst writes in his report.

“Therefore, we expect the salmon price to be 53 kroner per kilogram in 2018, which is about NOK 3 per kg below the forward price. This give us company estimates below consensus for 2018E and a careful market outlook.”

This summer, French Kepler Cheuvreux swallowed up Swedbank’s brokerage business, known in Norway earlier as First Securities. The Swedish bank retained six percent of the shares in Kepler Cheuvreux as well as a seat on the brokerage giant’s board.

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