Nordea raises price target for Marine Harvest to NOK 200

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Despite begining the year as a pessimist, Kolbjørn Giskeødegård, analyst for the Nordic financial services group, Nordea, is now among the most optimistic on behalf of the share.

He today raised Marine Harvest’s price target from NOK 185 (EUR 19.2) to NOK 200 (EUR 20.8).

Nordea Markets also upgraded its salmon price estimates for 2019 and 2020 to NOK 62 (EUR 6.4) per kilo from the previous NOK 60 (EUR 6.2) according to an update on Thursday. The estimate for 2018 is maintained at NOK 61 (EUR 6.3) per kilo, as reported in TDN Finans.

“Our main scenario for the seafood industry is now lower supply growth and high demand growth. Low prices in the third quarter are the best prerequisite for a pricing in the fourth quarter and into 2019, ” wrote the brokerage.

The Nordea analyst believes that this will result in improved expected free cash flow, coupled with low debt in many of the companies they cover, meaning that they raise the forecasts for 2019’s dividend payments.

Marine Harvest’s stock is up 2.6% so far today at 178,60 NOK.