Barclays cautious on salmon demand, pricing into 2025
16/12/2024 12:05
** Barclays says less favourable supply-demand will hit
salmon prices in 2025, overshadowing the expected cost relief
for Norwegian fish farmers
** It says outlook for U.S. demand is unsure, especially
with potential tariffs on salmon; it notes nearly all U.S.
consumption is imported from Chile, Canada and Norway
** It sees potential for a sharp reduction in feed costs,
which typically represent about 50% of salmon farmers' typical
cost/kg
** On average, it sees about 5% absolute cost/kg reduction
in 2025, as inflation in some other costs partially offsets this
tailwind
** The broker downgrades Leroy Seafood LSG.OL to
"equal-weight" from "overweight" after strong YTD outperformance
and re-rating vs peers
** Mowi MOWI.OL ("overweight") remains Barclays' top pick,
due to its strong track record of delivery vs guidance and
relative sustainability credentials
** It keeps "equal-weight" on Salmar SALM.OL noting the
company has been somewhat more accident-prone on biology over
the past 12 months, with two downgrades to harvest guidance
(Reporting by Marta Frąckowiak)
((marta.frackowiak@thomsonreuters.com))