Fearnley Securities upgraded Lerøy Seafood Group to Buy from Hold on 12 May following recent share price weakness, while raising its price target to NOK 53 from NOK 52 per share.
The upgrade followed Lerøy’s Q1 2026 results. Analyst Theodor Aleksander Rosenberg said the stock’s improved risk/reward profile and valuation discount relative to peers supported the recommendation change.
According to Fearnley, Lerøy trades at 11x, 9x and 8x its estimated earnings per share for 2026, 2027 and 2028 respectively, compared with peer multiples of 15x, 11x and 10x.
The bank said the NOK 53 price target implies a dividend yield rising from 5% in 2026 to 7% by 2028.
Fearnley reduced its 2026 EBIT estimate by 3% due to a flatter expected cost improvement at Sjøtroll, partly offset by an upgraded Wild Catch EBIT forecast of NOK 375 million, up from NOK 255 million previously, following revised company guidance of NOK 350 million to NOK 400 million.
The broker maintained its 2026 harvest volume estimate at 195,000 tonnes, but noted that standing biomass at the end of Q1 was 5% below the prior year, creating downside risk.
For Q2 2026, Fearnley forecast harvest volumes of 47,200 tonnes, down from 49,200 tonnes a year earlier. Based on an assumed spot price of NOK 81.9 per kilogram, it projected Q2 EBIT of NOK 867 million, 10% below FactSet consensus.
Fearnley’s revised 2027 and 2028 EBIT estimates were broadly unchanged and sit 4% below and in line with consensus respectively. Its 2026 EBIT estimate remains 6% above the Infront consensus median.