Exane BNP Paribas has downgraded its earlier share recommendation on Marine Harvest to “neutral” from “outperform” while also adjusting its stock price lower to 140 kroner from its earlier tip of 170 kroner.
The change appeared in a note to investors from TDN Finans.
The Bank said it believes supplies of salmon will grow faster than demand in 2018, and that this will weigh down the salmon price. It expects a reversal of course in 2019.
Salmon price estimates were lowered to NOK55 a kilogram for 2018 and NOK57 a kilo in 2019, down from NOK 62 and NOK63, respectively. The bank’s analysts see Marine Harvest as a “raw-materials bet” and the company’s share price shows a correlation with a salmon price of 0.87.
