Lerøy climbs to new record – doubling value in ten months

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Norwegian seafood giant now worth US$5.5b.

Lerøy shares climbed to a new ‘all time high’ on Wednesday, trading at NOK 84.54 after an increase of 2.8 per cent. However, Lerøy is not alone in rising to record levels. Mowi, Bakkafrost and Lerøy’s main shareholder Austevoll Seafood are also all trading at close to all time highs today.

Lerøy Seafood Group has almost doubled in value since the end of October last year.

Illustration: Infront

Pareto Securities is among the brokerages that have a positive recommendation on the Lerøy share. According to analyst Carl-Emil Kjølås Johannessen, the company will sweep in NOK 697 million (US$79m) in operations in the second quarter of the year. The company is set to present its half-year figures on 19 August.

Kjølås Johannessen has Lerøy as his favourite pick in the seafood sector.

“The salmon market is quite high priced now, but our analysis indicates that Lerøy is traded at a large discount, especially compared to the other heavyweights such as SalMar and Mowi. But the share has risen quite a lot, so it is starting to be somewhat limited upside if you look at the price target we have set,” Johannessen told Norwegian business newspaper, Finansavisen earlier this week.

Pareto Securities has a price target of NOK 85 for Lerøy, which means that the brokerage house will soon have to change its price target or recommendation on the share.

The first of two feed rafts in tow from Endur Sjøsterk to one of Lerøy Sjøtroll’s locations south of Bergen.