On Wednesday morning, Grieg Seafood presented its figures for the third quarter. They were significantly better than the preliminary estimates from the analysts who cover the stock. Grieg Seafood achieved an operational EBIT of NOK 149 million (€15 million) – well ahead of the investment banks’ estimates of NOK 109 million (€11 million).
Read also: High price achievement gave increased profits for Grieg Seafood
Grieg Seafood’s share price rose 5.1 per cent after the report was presented. In the wake of the results presentation, several investment banks are making adjustments in their view of the stock.
Carnegie reduced its price target to NOK 83, down from NOK 84, and believes the risk / return profile is unattractive as the investment bank believes Grieg is the most sensitive farming company towards cost inflation, which increases the estimate risk in 2022 and 2023, according to TDN Direkt.
SEB raised its price target to NOK 145, from NOK 131, and repeated a buy recommendation. The investment bank wrote that the first steps in the company’s turnaround operation were confirmed in the report.
ABG Sundal Collier downgrades its price target to NOK 98, from NOK 100, and repeats a hold recommendation. They also point out that the worst seem to be behind the company, but believe the share is fairly priced at a P / E of 14 times 2022 estimates.
DNB Markets raises its price target to NOK 105, up from NOK 100, and repeats a buy recommendation. The analysts at the investment bank feel more confident in the operational and financial stability of the company, and wrote that it was a solid report.
Pareto Securities raised its price target to 120, from NOK 110, and repeated a buy recommendation. Despite minor estimate changes after the report, Pareto also pointed to greater confidence in the 2022 estimates after the report.
Arctic Securities maintains NOK 95 in price target and a hold recommendation. “Although the outlook for the sector will be supportive of Grieg, we see high risk associated with Newfoundland,” it said in an update.
