Swedish big bank downgrades Atlantic Sapphire to HOLD from previous BUY.
SEB lowered its price target to NOK 92, from the previous NOK 182 per share, according to TDN Direkt.
“Following the weak 2020 report and first-quarter update, which showed high mortality rates, we have cut 2021-2023 estimates to reflect much slower growth following a series of technical events in Miami,” the investment bank wrote in an analysis on Tuesday.
Earlier, SEB expected Atlantic Sapphire to be EBIT positive from 2023. This assumption has now been shifted to 2024.
“In our model, the high growth ambitions linked to negative results over the next few years will provide a further funding need to realize the company’s long-term escalation plan,” wrote analyst Bent Rølland.
Atlantic Sapphire shares traded at NOK 83 on Wednesday morning.