Fearnleys Aquaculture has cut its target price on Mowi to NOK 238 per share from NOK 240, maintaining a Buy recommendation after reviewing the company’s Q1 2026 results.
The revision reflects a stronger Norwegian krone since Fearnleys’ last update, not operational deterioration. The broker cut its 2026 EBIT estimate by 4% and EPS by 1%, but left 2027 and 2028 EBIT forecasts unchanged.
Mowi guided for flat blended farming costs quarter-on-quarter in Q2 2026, prompting Fearnleys to lower its near-term earnings forecast. The broker now projects Q2 2026 EBIT at EUR 219 million, against FactSet consensus of EUR 256 million — a gap that Fearnleys expects will push consensus estimates lower in coming days.
Mowi also confirmed it has secured sufficient marine raw materials to hold feed prices flat from Q1 through Q3 2026, according to the report. This reduces short-term exposure to sector-wide feed cost inflation driven by rising raw material prices.
Fearnleys values Mowi on a 50/50 blend of DCF and historical price-to-earnings applied to its 2027 EPS estimate. Mowi currently trades at 14x, 11x, and 10x 2026–2028 Fearnleys EPS estimates — below the SalMar ASA and Bakkafrost average of 16x, 12x, and 10x for the same period.
The bank views this discount as unjustified given Mowi’s position as the sector’s largest operator. At last close, the stock implies a dividend yield of 4%, 6%, and 7% on Fearnleys’ 2026–2028 estimates.