Land-based salmon farmer downgraded by Sparebank 1 Markets

by
Editorial Staff

The company has also lowered its price target for Atlantic Sapphire’s shares from NOK 1.40 to NOK 0.65.

Investment firm Sparebank 1 Markets has downgraded land-based salmon farmer Atlantic Sapphire from ‘neutral’ to ‘sell’, according to a report by TDN Direkt.

Alongside this downgrade, the company has also lowered its price target for Atlantic Sapphire’s shares from NOK 1.40 to NOK 0.65.

This decision follows the company’s move to initiate an additional initial public offering (IPO), which was described as highly dilutive and necessary for the company to potentially break even in its Phase 1 operations.

Sparebank 1 Markets cites the expectation of an additional issuance of $140-150 million for funding Phase 2 as a reason for the downgrade, suggesting skepticism about the stock’s current value.

The share price of Atlantic Sapphire has experienced a decrease in price since the news of the downgrade, and finished Tuesday at NOK 0.90 a decline of 17% since Friday evening.

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