DNB Markets gives Salmon Evolution a 70 per-cent probability of commercial success

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Investment banker is a conditional optimist on behalf of land-based salmon farmer.

DNB Markets increased its price target on Salmon Evolution to NOK 11 per share, from NOK 10, and reiterated its BUY recommendation. This is stated in analysis from the investment bank, according to TDN Direkt.

Last week it was reported that the listed land-based salmon farmer entered into a joint venture with fishing giant Dongwon Industries, to build a 20,000 tonne site in South Korea. This is in addition to Salmon Evolution’s own facility, in Hustadvika, Western Norway.

DNB Markets highlighted the joint venture with Dongwon Industries and wrote that the indications for the first harvest in mid-2025 are later than the investment bank expected.

“We have reduced our total fair value on the Asian JV due to lower than expected harvest volume and cash flow further out in time, but have increased the probability of success from 40 to 70 per-cent,” wrote DNB Markets.

On Wednesday morning, Salmon Evolution’s share price rose 5.4 per-cent to NOK 7.37. This gives it a market value of EUR 150 million.