New all time high for Mowi: Nordea Markets thinks there’s more to go

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Mowi rises to new all-time high.

On Thursday morning, the salmon giant rose 3.4 per-cent to NOK 230.70. The share price has never been higher.

At the same time, Nordea Markets upgraded Mowi to BUY from HOLD with a price target of NOK 245 per share. That was reported in a Thursday update, according to TDN Direkt.

“After a challenging 2020, 2021 looks definitely brighter,” the investment bank wrote.

The price outlook for the second to fourth quarters looks “promising”, and Nordea has increased its salmon price estimate in 2022 to NOK 60 (EUR 5.9) from NOK 58 (EUR 5.7).

“Mowi will be a relative winner once the restaurant segment returns, and the market balance in America seems to be getting tight. Given Mowi’s favourable geographic exposure to America, low contract share, a good Consumer Products segment and a possible increase in 2021 volume guidance, we are raising our buy recommendation,” Nordea Markets wrote.

The price target, of NOK 245, gives a P/E of 20 times Nordea’s estimate for 2022.