The Oslo-listed salmon shares got a boost on Tuesday, up 3 per-cent for the seafood sector. Next week, comes the Q2 figures.
The Q2 reports are nearly upon us. AKVA group will release its report on Friday, and next week many of the major salmon companies will follow.
In its preview report, investment bank Arctic Securities highlighted two shares, Lerøy and SalMar, in advance of the results presentations, reports TDN Direkt.
Lerøy Seafood Group is expected to present an EBIT of EUR 39 million, against a consensus of EUR 32 million.
“We still advise investors to look past the next few quarters and believe 2021 will be a transformational year for the company. The last year’s investments in smolt should be a trigger for volume growth and operational improvements are not priced into today’s valuation,” wrote Arctic, which has a BUY recommendation with a price target of NOK 65 on Lerøy.
SalMar is to earn even more, believe the investment bank. An EBIT of EUR 81.6 million is expected against a consensus of EUR 61 million.
“We expect SalMar to continue to deliver good operational results compared to competitors and reiterate its buy recommendation with a price target of NOK 500,” it stated.
For Grieg Seafood, Arctic expects an EBIT of EUR 9 million. The price target is NOK 110.
“Grieg Seafood is still priced under competitors, but we are keeping our HOLD recommendation as we believe the discount is justified in the short to medium term.”
Faroese Bakkafrost is expected to report an EBIT of EUR 20 million, against a consensus of EUR 16 million.
“Although Bakkafrost is a good company, we continue to find better value elsewhere and maintain our HOLD recommendation with a price target of NOK 550 per share,” Arctic Securities added.
