Fearnley Securities seafood analyst Nils Thommesen does not believe all the land-based projects will be built.
Fearnley Securities is initiating coverage of the land-based fish farmers Andfjord Salmon, Atlantic Sapphire and Salmon Evolution with three BUY recommendations, according to an analysis on Sunday.
The price target of Andfjord Salmon is set at NOK 80, Atlantic Sapphire at NOK 162, while Salmon Evolution at NOK 9, reported TDN Direkt.
The investment bank believes the land-based industry is more attractive after several years of high salmon prices as a result of subdued supply growth, combined with cost growth from the conventional aquaculture industry.
“We identify two million tonnes in planned capacity but estimate that a fraction of the projects will be completed due to bottlenecks in the industry over the years. As such, the risk comes down to the companies that have come the furthest in development, which provides attractive investment opportunities,” wrote Fearnley analyst Nils Thommesen.
SalmonBusiness released an industry report on Monday, which identified, named and presented 88 companies with a theoretical production capacity of close to 2.3 million tonnes of land-based salmon.