Pointed to inflated construction costs.
DNB Markets is downgrading its Atlantic Sapphire price target to NOK 140 from NOK 170, according to an update on Tuesday.
“We have lifted our Capex budget for Phase 2 onwards to reflect commodity inflation as well as adjusting our model for new equities and cash,” the investment bank wrote as reported in the financial news site TDN Direkt.
In connection with the USD 121 million share issue last week, Atlantic Sapphire published a CAPEX budget for the second stage of construction of USD 210 million, while DNB Markets had estimated a budget of USD 150 million, it said.
DNB Markets, together with Bank of America and Arctic Securities, facilitated the fundraising process.