Now is the time to buy, broker Pareto says.
After the Norwegian government presented the new resource rent tax in September, salmon stocks have been hit hard.
“The salmon shares have fallen a lot, and they have fallen more than we think earnings will drop by. The multiples in the sector are now at their lowest since 2014-2015, Pareto analyst, Carl-Emil Kjølås Johannessen,” says to Finansavisen.
He points in particular at investment freezes, as well as problems surrounding the contract pricing.
“The salmon sector is now traded at a record discount to both global proteins and to brand- and retail companies, and this discount is much larger than it has been in the recent years. And as I see it, too big,” Kjølås Johannessen adds.
The Pareto analyst believes that the share prices, in a 12-month perspective, will rise, and highlights Lerøy and Mowi as the best buys. On the other hand, he notes that there is “a bit of uncertainty in SalMar” due to the NTS acquisition. SalMar is also the hardest hit by the government’s proposed resource rent tax.