Investment bank Nordea Markets upgrades Mowi and Grieg Seafood

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Grieg Seafood goes from SELL to BUY, Mowi from SELL to HOLD.

The upgrades were presented in analysis on Thursday, reports TDN Direkt.

Nordea Markets upgraded Grieg Seafood to BUY from SELL, raising the price target to NOK 95, from the previous NOK 93. Nordea Markets believes Grieg Seafood still has a long way to go operationally to produce on par with the industry, but that “there are many important initiatives ongoing.”

Nordea believes the stock is one of the more attractive bets for a tighter market balance from the second half of 2021, which is cited as justification for the upgrade.

Grieg Seafood last traded at NOK 66.65, having dropped heavily recently.

Nordea Markets is also upgrading Mowi from SELL, with an unchanged price target of NOK 165.

The bank believes the third-quarter update gave a positive picture of margins in both Chile and Norway, and also emphasised cost cuts in connection with a 10 per-cent reduction of employees by 2024.

“We are confident that Mowi will eventually control costs, but the timing is uncertain and we are seeing increased risk during a second wave of the pandemic. We are thus upgrading to HOLD,” Nordea Markets wrote.

Mowi was trading at NOK 150 on Thursday morning.