Pareto believe in “first mover advantage” as Atlantic Sapphire’s value increases by 14 percent

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Miami land-based farm priced at more than EUR 500 million after new stock exchange report.

Shortly after DNB Markets raised the price target at Atlantic Sapphire, competitors Pareto Securities followed up immediately. Pareto believes the pioneering company, which is currently building the world’s largest land-based salmon farm in sunny Florida, can benefit from a first mover advantage.

This implies an advantage of being well ahead of the competition and being able to capitalise on this.

Growth potential
«We expect the company to increase production up to 83,000 tonnes in 2026, and generate NOK 2.1 billion* in EBIT. We also see significant growth potential beyond this due to the scalable business model. We initiate coverage with a buy reccomendation of NOK 100**, which means 20 times 2022’s and 4 times 2026’s EBIT,” wrote analyst duo Carl-Emil Kjølås Johannessen and Gard Aarvik in their analysis report.

Analysts say the projected annual volume of 83,000 tonnes in 2026 is a “conservative” estimate.

As Pareto’s stock brokers put down the phone to their investor customers on Wednesday, the share price in Atlantic Sapphire was up 14.5 per cent. The stock last traded at NOK 82.99***, which puts the value of the the company just under NOK 5.2 billion.

You can read Atlantic Sapphire’s latest stock price HERE

Likely
Atlantic Sapphire’s CEO and founder, Johan E. Andreassen, didn’t not want to comment on the share price.

“I assume that more and more investors see it as likely that we will succeed with what we are doing,” he told SalmonBusiness.

Last week, SalmonBusiness reported that Skagen funds had a 150 percent return on their investment in Atlantic Sapphire.

Huge
“Even after a very nice share price development, we still see this as a long-term investment. It should multiply in price due to the enormous potential of an industry where conventional farming struggles to grow due to regulation and biological problems while the demand for salmon grows. They are many years ahead of everything else we have come across from land-based projects,” said Skagen portfolio manager, Cathrine Gether.

Now Gether can enjoy the bigger price growth for her company’s investment.

*EUR 215 million
**EUR 10.2
***EUR 9,2