“Investors need to look further on the risk scale to find significant upside potential”

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DNB Markets takes a neutral sector view in the latest sector update.

There are positive prospects for the seafood sector, but this is largely reflected in estimates and upside potential generally looks more limited, the Norwegian brokerage house is quoted as saying to TDN Direkt.

“Many of the shares we cover have developed well, driven by reopening expectations, lower supply and a good demand response in the market. As we see less upside in several of the shares we follow, we believe investors must look further on the risk scale to find significant upside potential. We are thus taking a more neutral position on the sector, even though there has historically been a positive trend from the end of the third quarter towards the Easter season”, wrote DNB Markets.

Salmones Camanchaca receives a reduced price target of NOK 60 per share, from NOK 68, with a repeated buy recommendation. DNB Markets’ top choices in the sector are still Lerøy Seafood and Austevoll Seafood.