Danske Bank eyes up purchasing potential.
“Salmon shares are – in the main – not expensive, if you take into account anticipated earnings for 2019 and 2020,” said Danske Bank analyst, Knut-Ivar Bakken, to the Norwegian news site E24.
“We won’t be surprised if shares can be bought cheaper in the near future,” he added.
During the last year the seafood index has risen by 50.53 percent. In comparison the main index has risen by 9.50 percent in the same period.
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Bakken anticipates that aquaculture companies’ revenue will increase in the next few years, as demand will continue to grow, while growth in supply will be limited.
He said shares have surged significantly just lately, regardless of nothing newsworthy having happened that would perhaps provide an explanation for this. Bakken also stressed that, historically speaking, the market hasn’t been that good at weathering periods with low salmon prices, and he is not convinced that the bottom for feed prices has been reached yet.