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Salmon analysts disagree on the way forward for Grieg Seafood shares after Wednesday’s updates.
Grieg Seafood, led by Andreas Kvame, experienced a historically weak trading day on Wednesday. On Thursday, the stock is up slightly.
Tommy ellingsen
Published:,
Several brokerages have made changes to their recommendations on Grieg Seafood shares, according to updates on Wednesday and Thursday.
This comes after the salmon company announced on Wednesday a drop in profits, the postponement of parts of the Terranova project, a possible default on the terms of the loan and changes in the terms of the loan following talks with the banks.
The news gave Grieg Seafood its worst trading day with a fall of 17.89 percent to a price of 70 crowns.
Lower your target price
Carnegie raises its recommendation on Grieg Seafood to “hold” from “sell.” Meglerhuset writes that “the cat is out of the bag” after the update.
The target price is reduced to NOK 65, from the previous NOK 68.
The fact that the price of salmon falls to NOK 40 per kilo means that liquidity is further weakened. Salmon prices at this level, which do not rise to around NOK 50-60 by the end of December, could create further challenges. The same is true for biological problems.
DNB Markets, for its part, believes its clients should continue to buy salmon stocks, according to Infront TDN Direkt.
Meglerhuset lowers the target price to 110 crowns from the previous 130 crowns.
Don’t think that Grieg has to raise money in the capital market
DNB Markets had already expected poor results for the third quarter, apparently.
The brokerage does not believe that Grieg Seafood will have to raise money in the capital market due to the easing of loan conditions until the third quarter of 2021, and expects a significant increase in earnings in the future.
Therefore, DNB Markets has a strong advantage, but notes that Grieg Seafood must restore market confidence after several weak quarters.
Sparebank 1 Markets lowers Grieg Seafood’s target price to NOK 115 per share, from the previous NOK 130. Danske Bank also lowered its target price, to NOK 128 per share, from the previous NOK 134.
Danske Bank Markets emphasizes that Grieg’s stock is now valued in line with the Norwegian production license value of NOK 70 per share, based on prices at the auction in August, and therefore sees a high rise in prices. Stronger salmon prices in the coming years.
Background:
also read
Worst trading day for Grieg Seafood
