Five investment banks lower Mowi price targets after Q3 report

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Lower harvest volumes for 2021 reduces profit estimates and price targets.

There were limited reactions from the financial market following Mowi’s Q3 report. However, investment banks commented that the company’s volume guidance for 2021 was a great deal lower than expected and, as a function of it, expect reduced earnings estimates.

On Thursday morning, TDN Direkt reports that five investment banks are now lowering their price targets in Mowi.

DNB Markets lowered the Mowi’s price target to NOK 185 from NOK 195, but they retained the BUY recommendation. The investment bank believes volume guidance for 2021 disappointed but also pointed out that management expects flat costs in the fourth quarter.

ABG Sundal Collier, which also has a BUY recommendation on Mowi, is taking down the price target to NOK 195 from NOK 208 per-share on the assumption of lower long-term volumes.

SEB is adjusting its Mowi price target to NOK 204 from NOK 211, while retaining the BUY recommendation.

Arctic Securities reduced the price target to NOK 170 from NOK 175 and retains a HOLD recommendation. They pointed out that the coronavirus is affecting salmon prices and the lower adjustment was made against the backdrop of high uncertainty in the short term.

Danske Bank Markets reiterated its BUY recommendation but adjusted the price target on Mowi to NOK 208 from NOK 212 because of lower-than-expected volume guidance from Canada in 2021.

On Thursday morning, Mowi’s share price fell by 2.7 per-cent to NOK 150.25.