Barclays downgrades salmon farmers as US tariffs are set to hit demand

SalMar ASA

07/04/2025 11:42

** With the United States accounting for nearly 23% of global salmon consumption, Barclays says U.S. tariffs on Norway and Chile will likely weigh on demand, pressuring prices and profits

** "U.S. per capita consumption growth of salmon (almost all of which is imported) has been a key driver of global demand," the broker says

** A potential 10% hit to U.S. consumption could, all else equal, hit global demand for salmon by about 2.5%, Barclays says

** It expects salmon farmers to find alternative markets to compensate for lost U.S. consumption, but this is likely to take time

** "The potential demand hit comes at an awkward time for the space with global supply rebounding in 2025," it adds

** Barclays downgrades SalMar SALM.OL and Leroy Seafood LSG.OL to "underweight" from "equal-weight"

** It cuts Mowi MOWI.OL to "equal-weight" from "overweight" but retains relative preference for the company as the most consistent name in recent years, benefiting from geographic diversification into Chile and Canada

 (Reporting by Marta Frackowiak)

 ((marta.frackowiak@thomsonreuters.com))