The Scottish salmon farming company leaps ahead on the stock exchange yet again.
It was after the company released good quarterly results on Monday and at the same time announced plans to consider so-called “strategic options” that the course really gained momentum. At lunchtime on Friday, the stock was traded at NOK 22.05, after a juicy rise of 6.5 per cent.
There is a level share price the Scots have never been near before. The Scottish Salmon Company (SSC) equity is valued at EUR 400 million.
The company, which has long struggled with high production costs and weak results, has seen a noticeable operational improvement over the past year. Earnings in the first quarter were as much as 40 per cent better than the pre-tips for Pareto Securities, which raised the price target from NOK 21 to NOK 23 after the report. The recommendation is unchanged: Buy.
According to Pareto Securities, profit growth was characterized by higher harvesting volumes and lower production costs than previously expected. In an analysis report presented on Monday, Pareto analysts Carl-Emil Kjølås-Johannessen and Gard Aarvik emphasize that the company also announced a “strategic review”.
“SSC announced in its first quarter update that it has engaged a financial advisor to explore the various opportunities to maximize shareholder value. According to the company, this could be to return capital to shareholders, use the capital market to grow non-organic or enter into partnerships to accelerate the sales expansion to Asia. We believe that the solid operation of SSC today makes it more attractive as a partner,” wrote Pareto Securities.
News from The Scottish Salmon Company has not been published since the release of the first quarter results Monday.