“The stock market priced a significantly higher EBIT margin, but we think both the valuation and the margin look stretched. There are some dark clouds on the horizon,” said Pareto seafood analyst Carl-Emil Kjølås Johannessen.
Among the dark clouds that are listed is the potential resource rent in Norway, which he believes will result in lower investments and higher costs in Norway, writes TDN Finans.
– With the resource rent, you will get a cost level of around NOK 45 (EUR 4.5) per kilo before normal tax. That will give lost competitive advantage,” he says on the podium during the North Atlantic Seafood Forum in Bergen, Norway.
“There has been a trend in recent years where salmon farmers have done well on the stock exchange and outperformed the stock market as a whole, but the entire upturn in 2019 has been driven by multiple expansion,” he added.