The investment bank’s recommendation is ‘Buy’ on SalMar with a price target of NOK 264 (€28) per share.
In the report “Pink Gold”, according to TDN Finans, the Berenberg analysts emphasize that SalMar is one of the few salmon farmers that has capacity for growth in the market. This is mainly due to ‘Ocean Farm 1’, which is projected to increase production by 14 percent compared to today’s expectations.
Berenberg analysts have calculated that production costs per kilo from ‘Ocean Farm 1’ could be 15-20 percent lower than existing operations, due to lower costs related to sea lice prevention, as well as cheaper feed and lower harvesting costs.
The SalMar stock rose 2.8 percent on Oslo Stock Exchange after lunch Tuesday.
Froya-based SalMar is the World’s third largest salmon farming company.