Investment bank Kepler Cheuvreux this morning upgraded recommendations on Marine Harvest, Lerøy Seafood Group, Norway Royal Salmon and Grieg Seafood from “Hold” to “Buy”. In addition, SalMar is upgraded to “Hold” from “Reduce”.
The salmon stocks rise sharply at the Oslo Stock Exchange today, apparently without other price-driving news than this analysis.
NTS increase by 12.2 per cent, ahead of Grieg Seafood (7.5 per cent) and Lerøy owner Austevoll Seafood (7.4 per cent). Lerøy and Salmones Camanchaca is up 5.7 per cent, while SalMar (5.1 per cent) then follows. Marine Harvest is up moderate 2.8 percent.
“We take several of the salmon shares up to “Buy”. We still have SalMar on hold because we think it looks expensive, but otherwise we have a very positive view of the sector”, says analyst Christian Olsen Nordby in Kepler Cheuvreux to TDN Direct.
“This is due to the fact that the supply in the market by 2019 does not seem to be too high, since the 2018 generation seems to remain fairly moderate on the growth side, which makes 2019 look very strong”, he says.
From 2019 onwards, the analyst will see regulatory conditions in Norway and Chile likely to exclude large supply growth.