Berenberg sees strong volume growth potential, ups SalMar to 'hold'

SalMar ASA

04/10/2023 11:31

** Berenberg raises Norwegian fish farmer SalMar  SALM.OL 
to "hold" from "sell" to reflect improved net debt outlook and
strong volume growth potential, and ups PT to NOK 540 from NOK
460
    ** It expects a likely strong El Nino weather pattern during
the up-coming winter to keep salmon prices high, and says SalMar
should take advantage of higher prices for the remainder of 2023
and during 2024
    ** The broker says a further sharp rise in salmon prices is
unlikely, as current demand lacks momentum both in Europe and
the U.S.
    ** It warns against cost inflation, and says El Nino will
keep pressuring already very high fish meal and fish oil costs
until second half of 2024
    ** It keeps peer Mowi  MOWI.OL  at "hold" but cuts PT from
NOK 225 to NOK 220, as El Nino could directly hit Mowi's Chilean
harvest, creating mixed outcomes for the company
    ** The broker prefers SalMar over Mowi, as it does not have
direct exposure to Chile


 (Reporting by Elviira Luoma)
 ((Elviira.luoma@thomsonreuters.com))