Nordea Markets upgrades Leroy to “hold”

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Salmon industry analyst, Kolbjorn Giskeodegaard, has long subdued whatever optimism he might have had for salmon prices and shares. Today, he went from “sell” to “hold” on Leroy Seafoods and upped his appraisal of salmon price prospects.

Nordea Markets is upgrading its recommendation on Leroy Seafood Group as a result of increases in salmon-price estimates for through to 2019 and a reduction in cost estimates, TDN Finans reported a note to shareholders as saying.

Giskeodegaard said Leroy’s four-quarter results showed higher-than-expected pre-tax operating profit. While Leroy harvested five percent fewer fish than expected, that positive earnings deviation was owed margins that were higher than expected.

Nordea’s salmon-price estimates for 2018-2019 have been increased to EUR 5.2 from EUR 5.0.

Leroy, meanwhile, was up 3.6 percent on the Oslo Stock Exchange by mid-morning on Wednesday.