'The cat is out of the bag' - Kepler ups Grieg Seafood to 'hold'

Grieg Seafood ASA

21/02/2025 11:41

** Kepler Cheuvreux upgrades Norwegian salmon farmer Grieg
Seafood  GSFG.OL  to "hold" from "reduce"; raises target price
by 2% to NOK 49 seeing no further downside or upside for the
shares, which fell 25% following the Q4 report on Thursday
    ** "The cat is out of the bag," it says, pointing to there
being no Canada deal
    ** "Grieg booked a Canadian impairment of NOK 1,700 million
due to capex reallocation away from Canada and political
uncertainty in the region, implying a no-deal scenario at this
point," as per the brokerage
    ** Despite the company posting a marginally better than
expected Q4 EBIT loss of NOK 68 million ($6.12 million), the
focus was on the Canadian asset sale and financing outlook, the
broker adds
    ** The company said in a statement it was "lowering its
growth ambitions" in Canada, expecting 5% decline in harvest
volumes there in 2025
    ** Out of nine analysts that cover Grieg Seafood, one rates
it "buy", six rate "hold", and two rate "sell" or "strong sell"


($1 = 11.1057 Norwegian crowns)

 (Reporting by Marta Frackowiak)
 ((marta.frackowiak@thomsonreuters.com))