'Heading into best salmon market ever' - Nordea ups Mowi, Leroy

Austevoll Seafood ASA

01/02/2022 10:59

** Nordea forecasts "clear skies ahead" for the salmon
farmers, saying it believes higher salmon prices will "more than
counter cost inflation" as end markets normalise
    ** "Exposure to salmon farming is set to pay off as we are
heading into the best salmon market ever," the broker says
    ** It prefers "the old masters", SalMar  SALM.OL  and Mowi
 MOWI.OL , which it says provide healthy protection on the
downside while maintaining solid exposure to the outlook of a
"booming" salmon market in 2022 and beyond
    ** The broker says its EBIT estimates for 2022-23 are around
10% ahead of Refinitiv consensus on average, mainly due to its
improved salmon market outlook
    ** Nordea ups Mowi to "buy" from "hold", citing lower
earnings volatility and smaller risk of cost issues thanks to
its broader geographical exposure
    ** It also raises Leroy Seafood  LSG.OL  to "buy" from
"hold", saying it expects the group to start delivering lower
costs Y/Y in H2 2022, driven by lower costs at its new smolt
facility in Sjotroll
    ** Nordea reiterates "buy" rating for Austevoll Seafood
 AUSS.OL , Bakkafrost  BAKKA.OL , Grieg Seafood  GSFO.OL , and
SalMar

 (Reporting by Ina Kreutz)
 ((ina.kreutz@thomsonreuters.com))