Berenberg Bank has been strengthened in the belief in Mowi following a roadshow with the CEO.
In the wake of the company’s latest quarterly report, one of Europe’s leading privately-owned banks has been on a roadshow with Mowi chief Ivan Vindheim in London. Here, Berenberg gained strength in both the salmon market in general and Mowi in particular.
“We were left with the impression that the long-term relationship between supply and demand is still favourable, that the impact on salmon prices from the coronavirus is likely to be only short-term,” according to an update on Tuesday according to TDN Direkt.
“Mowi is the only salmon farmer who can offer consumer products with full transparency and traceability through its brand strategy,” it wrote.
The demand for salmon is low in China as most restaurants have been closed since the coronavirus outbreak. However, China accounts for only five per cent of global salmon demand and the Mowi CEO remains confident that the coronavirus will likely only be temporary, unless the outbreak develops into a global pandemic, according to Berenberg.
The bank has a BUY recommendation on Mowi with a price target of NOK 255.
The Mowi share traded at NOK 225.50 just after lunch Tuesday. This is an increase of 0.8 per cent.