Grieg Seafood’s share price shoots up 27 percent in just four days

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The presentation of results, a new strategic plan, salmon price hike and increased price targets have raised Grieg’s market capitalisation by around EUR 33 million in a very short time.

Grieg Seafood is up 12 per cent on most of the salmon companies on the Oslo Stock Exchange Friday. The company has seen the share price gain by as much as NOK 30, or 27 per cent since Monday.

ABG Sundal Collier wrote in an update on Friday that the stock is an attractive growth case with a 2020-p/e 11.5x against the 15x sector average.

“Although we put a factor of two kroner lower in EBIT per kilo against other salmon farmers, the valuation looks attractive, given the expected strong volume growth. We repeat the purchase recommendation and raise the price target to NOK 150 per share, from previously NOK 146,” wrote the investment bank according to TDN Finans.

Earlier today, SalmonBusiness reported that the salmon price will rise six to seven kroner against next week.

Grieg Seafood presented its third-quarter results on Thursday morning which was very well received by the financial market.

Likewise, the company’s fresh and very ambitious strategic plan for cost leadership and a harvest volume of 150,000 tonnes became available by 2025. The increase in production, which means close to double the expected harvest volume for the year, will be done both organically and through mergers and acquisitions.