Estimates for EBIT shaved off by 40 per cent for 2020-2022.
“For the salmon farmers, the current coronavirus situation presents a type of uncertainty that has not been seen before. The HoReCa segment (hotel and restaurant market) has largely stopped while demand from groceries has increased ”, Nordea Markets wrote in a sector report on Thursday according to TDN Direkt.
Nordea Markets estimates a global fall in demand of 15 per cent. On the supply side, analyst Kolbjørn Giskeødegård lowers his estimates for 2021-2022 from 5.5 per cent to 4 per cent growth.
“Looking at the solidity, we see low risk despite significantly lower EBIT estimates. Our new estimates for salmon prices are 4.5-5.0 euros for 2020-21 and 5.5 euros for 2022. This means price levels of NOK 50-51 for 2020-21, NOK 55 in 2022 and NOK 58 as our new long-term salmon price estimate,” Nordea Markets wrote in the report.
