Nordea Markets reduced its profit estimates on the seafood companies it covers.
According to an analysis from Nordea Markets distributed on Wednesday morning, as reported TDN Direkt, all salmon shares are downgraded – except for Bakkafrosts.
The investment bank indicated that salmon prices have fallen close to NOK 20 (EUR 2) through the third quarter.
“The fall in prices has been stronger and longer-lasting than we expected, although volumes have also been relatively high in recent weeks,” Nordea Markets wrote.
Based on expectations of a six per-cent growth in global supply over the next two years, Nordea Markets cut its salmon price estimates for 2020-21 to NOK 57/kg (EUR 5.7/kg),
Recommendations on Austevoll Seafood, Grieg Seafood, Lerøy Seafood, Norway Royal Salmon and Salmones Camanchaca are downgraded from buy to hold, while Bakkafrost maintains a hold recommendation based on a high price premium on fixed-price contracts.
Mowi and Salmar recommendations are downgraded to sell from hold. The price target at Mowi’s is NOK 185, while SalMar’s price target is NOK 380.
SalMar and Lerøy fell 3.3 per cent and 2.9 per cent respectively after the opening of the Oslo stock exchange. Mowi dropped 1.2 per cent.