Pareto Securities: These are the cheapest salmon farming stocks

Investment bank gives ‘Buy’ recommendations for all the shares it covers in the sector.

Salmon prices have been under pressure in this season, with increased slaughter volumes. It happens just about every summer, and this year is no exception.

“Spot prices are currently around NOK 57/kg (€6.10). We expect prices to fall further on increased volumes, “writes Pareto analyst Carl-Emil Kjolas-Johannessen in an analysis report.

The young analyst observes that salmon shares have risen by 5-10 percent since mid-July, and he forecasts further growth in the time ahead.

Kjolas-Johannessen does not hide the fact that his salmon price and earnings estimates are the result of consensus among the investment banks that follow the salmon shares, but at the same time he notes that Pareto’s price estimates are below the futures prices of Fish Pool.

With this backdrop, he believes the salmon farming shares on Oslo Stock Exchange are attractively priced.

In particular, he picks out Grieg Seafood, which has the highest upside to his price target.

Pareto Securities is currently the only investment bank that exclusively has Buy recommendations for salmon shares. As mentioned earlier, the highest upside to price ratio is Grieg Seafood (42 percent), ahead of SalMar (35 percent).


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