DNB: trade in salmon still “moderate”

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Norwegian Investment bank DNB Markets downgraded its estimates for the salmon price in 2018 to NOK55 (€5,58) per kilo from previous NOK 58 (€5.89).

This was reported in DNB’s seafood report published yesterday, according to TDN Finans.

“In spite of underlying support for valuation, stock still appears to be trading on moderate multiples, so we struggle to see what’s going to drive stock prices up,” writes DNB Markets in the report.

Also, price expectations for the fourth quarter are downgraded to NOK49 (€4.98).

The reason for the downgrade of the price estimate is the weaker spot price and the higher volume in the short term.

The price target for Grieg Seafood is downgraded from NOK95 to NOK90, while the Lerøy share is downgraded to NOK52 against NOK55. Although the bank reiterates a neutral view of the seafood sector, Grieg Seafood and Lerøy are preferred purchasing options.