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– It is difficult to say what the share here will be priced at, says salmon analyst Christian Nordby in Kepler Cheuvreux.
He talks about Norwegian Atlantic Sapphire, which has plans for huge facilities for salmon produced on land in Miami in the USA. The company, which was listed on the stock exchange in the spring of 2018, had an adventurous start on the stock exchange, but has fallen sharply this year.
Most recently a week and a half ago, the share price fell sharply after the company presented its half-year figures. In the newspaper columns, it was challenges to obtain enough liquid oxygen for the salmon that got the most space. The company reported controlled slaughter of around 100,000 fish during optimal growth as a result.
On Monday night, Atlantic Sapphire announces that it has secured further oxygen deliveries, that the company can now increase feeding to normal levels, and that production is expected to be normal.
Kepler analyst Christian Nordby does not believe in the hallelujah atmosphere on the stock exchange. He believes it was expected that production would return to normal.
The stock rises just over four percent on Monday morning.
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Bigger losses than expected
According to Nordby, there were several things in the half-year reporting that may have sent the share price downhill.
He points out that the losses in the first half of the year were far greater than expected, and that the non-recurring costs were higher than expected. According to him, the sum of the information increased the probability of a new issue.
– They have no immediate need, but the market envisioned that there could be a new issue, he says.
So far this year, Atlantic Sapphire shares have fallen 59 percent.
In the first half of the year, profit before tax ended at minus 51.5 million dollars (almost 450 million kroner). A profit before tax of minus NOK 25 million was expected in advance, according to Infront estimates from four analysts.
In the days after the half-year figures from Atlantic Sapphire, the brokerages took out the cheese grater and cut off layers upon layers of their previous price targets, while many downgraded the recommendation.
– No obvious purchase candidate
Kepler analyst Nordby itself has a recommendation on the stock. He waits for more and better data points before making up his mind.
– I think it is too difficult to give a good recommendation. There is no obvious buying candidate. Then one should rather buy the regular salmon companies that have good production and that can take advantage of the high salmon prices I think will come in the coming years, he says.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We want you to share our cases using a link, which leads directly to our pages. Copying or other use of all or part of the content may only take place with written permission or as permitted by law. For additional terms look here.
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