Grieg Seafood faces mixed analyst ratings amid uncertainty.
Grieg Seafood has received mixed analyst revisions, with Pareto Securities downgrading the stock to “hold” from “buy,” while Carnegie and Danske Bank both upgraded it to “hold” from “sell.”
According to TDN Direkt, Pareto and Carnegie lowered their price targets to NOK 50 from NOK 68 and NOK 54 from NOK 57, respectively. Danske Bank raised its target to NOK 53 from NOK 50.
Carnegie justified its upgrade by stating that key catalysts for its previous sell case had already materialized and noted that Grieg’s management had denied speculation about selling its Norwegian assets.
The firm added that the most optimistic investors had exited, leaving a shareholder base focused on long-term value realization. However, Carnegie highlighted high leverage and increased equity risk following the hybrid bond issuance, justifying a neutral stance.
Danske Bank pointed to the cost of optionality in Canada as a limiting factor on share price potential, but upgraded the stock primarily due to its recent decline.
Pareto Securities took a more cautious stance, citing doubts over Grieg’s ability to unlock underlying value in the short term and warning that the hybrid bond issuance only delays existing challenges. The firm also noted a heavily risk-weighted valuation of Norwegian assets and no assigned value to Canadian operations, stating that better risk-reward opportunities exist elsewhere in the sector.
DNB Markets and ABG Sundal Collier also revised their targets downward, with DNB lowering its price target to NOK 50 from NOK 79, and ABG to NOK 55 from NOK 71, both maintaining a “hold” rating.
DNB highlighted unresolved long-term challenges despite short-term liquidity coverage, while ABG pointed to increased estimate risk tied to Grieg’s Canadian operations and ongoing balance sheet uncertainty.
Grieg Seafood’s stock performance has been under pressure following its exit from Canada, which resulted in a NOK 1.6 billion ($153 million) write-down, as reported by SalmonBusiness.
