DNB upgrades Mowi, SalMar and Bakkafrost on bullish outlook for salmon

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Raises this year’s price assumption by nine percent.

Investment bank DNB Markets raises its price assumptions for salmon to NOK 71 (EUR 7.1) for 2022, up from NOK 65 (EUR 6.5), and NOK 67 (EUR 6.7) for 2023-2024, up from NOK 63 (EUR 6.3). DNB Markets further expects that cost inflation will hit components in the sector, but with a lag against the spot price.

«We have increased the estimate for earnings per share in 2022 and 2023 by 8-9 per cent and reiterate our positive view of the sector. We are struggling to see where the supply growth will come from the next three to five years, given delays in new technology and stricter regulation in traditional regions”, DNB said in a new sector report on Thursday, obtained by TDN Direkt.

DNB Markets generally believes that consensus seems to be far too conservative when it comes to both salmon prices and production costs.

The investment bank highlights Lerøy Seafood, Austevoll Seafood and Grieg Seafood as its favorites in the sector.

Company New rec. Old rec. New target Old target
Mowi Buy Hold 240 230
Lerøy Buy Buy 100 90
SalMar Buy Hold 725 650
Bakkafrost Buy Hold 650 630
Atlantic Sapphire Buy Buy 60 60
Austevoll Seafood Buy Buy 150 138
Måsøval Buy Buy 50 47
Grieg Seafood Buy Buy 130 115
Salmon Evolution Buy Buy 11,3 11,3
Salmones Camanchaca Buy N.A. 58 N.A.