Atlantic Sapphire: ‘Confidence in the company and its communication with the market has been lost’

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But DNB Markets still believes there is a 100 per cent “upside” in the share price in Atlantic Sapphire.

Mass mortality, cost overruns, delayed slaughter, lack of oxygen and a completely lost facility in Denmark after a fire. 2021 has been an annus horibilis for Atlantic Sapphire.

Read more: Atlantic Sapphire stock market value goes up in smoke

“The share price has fallen 70 per cent so far this year, which in our view represents lost confidence in the company and its communication with the market,” wrote seafood analyst Alexander Aukner in an analysis update on Friday, reports TDN Direkt.

Liquid oxygen tankers outside the Atlantic Sapphire facility. Photo: AS

“The skepticism is understandable, however,” Aukner continued. He expects that the insurance payment after the fire in Denmark, of US$33 million, can help close the liquidity gap for the plans in the USA.

The DNB analyst lowers his price target from NOK 77 to NOK 70, but maintains his buy recommendation. This means an “upside” of just over 100 per cent, as Atlantic Sapphire is traded at a new annual low of NOK 34.20 on Friday morning.

The investment bank believes that a new round of capital raising should be reflected in the share price.