Salmon watchers DNB Markets, Pareto Securities and SpareBank 1 are lukewarm on the prospects of a new surge for Marine Harvest stocks.
Marine Harvest has, like other salmon shares, registered a solid market upswing so far this year, its rally reaching 25-percent.
Brokerage houses begin to see gains when a stock approaches its price target.
DNB Markets is downgrading its recommendation on Marine Harvest from “buy” to “hold”, upgrading, at the same time, its price target to NOK 185 per share from an earlier NOK 180, writes TDN Finans.
The brokerage said the recent share-price rally and optimistic sentiment among analysts and investors offers little room for upside in the stock. The industry looks like it’ll continue to do well, but the share-price performance already reflects this, just as future tax increases appear unavoidable and only add insecurity.
Pareto Securities has remarked that Marine Harvest is, for the moment, trading at higher multiples than one, on average, has seen historically, something that “is fair considering the current supply limits”. Pareto, which has a “hold” recommendation, has struggled to see the upside to today’s levels in the medium-term, but points to Marine Harvest’s attractive dividend of six to seven percent.
SpareBank 1 Markets maintains its “sell” recommendation following the earnings report, and its Marine Harvest price target is NOK 165.
On Friday, Marine Harvest had fallen by 2.7 percent as trading opened on Friday.
