Nordea Markets and Pareto Securities both increase their price targets.
Nordea Markets upgrades its recommendation on SalMarto Buy from previous Hold. Price target is set at NOK 495 per share, according to an analysis on Monday.
“New release in Ocean Farm should contribute to 7,000-9,000 tonnes in the 2020 estimates, which means that we will raise our 2020-2021 EBIT by two percent and upgrade to Buy,” Nordea Markets writes.
Pareto Securities has also been strengthened in its belief in the Oslo-listed fish farming company following last week’s quarterly report.
“SALM reported an Q2 EBIT slightly below our estimates, with a strong margin in Mid offset by a weaker result in North due to algae issues. We lower our 2019e with 2% due to higher Q3 cost but make limited changes longer term and expect a strong 2020 driven by increased volumes on Iceland and the second round of harvest from the Ocean Farm. We increase our target price to NOK 480 (460) due to a strong outlook and reiterate our Buy recommendation,” the investment bank writes in a report Monday morning.