Difference in salmon farming valuations ‘has rarely been higher’

Salmon farming companies listed on the Oslo Stock Exchange are expected to continue to benefit from a “strong development,” according to analysts at Pareto Securities, but companies’ valuations are farther apart than ever.

“We believe the valuation of some companies is somewhat stretched,” the firm wrote.

Shares in the sector are trading at 12 to 15 times their 2019-2020 earnings per share, “but the differences between comparable companies has rarely been higher,” analysts report.

The report lists Leroy Seafood and Salmones Camanchaca as sector favorites.

Leroy’s valuation is 30 to 45 percent lower than 2019-2020 multiples compared to Mowi and Bakkafrost, analysts noted.

Among the changes are a sell recommendation for Bakkafrost and a buy recommendation for Salmar.

Pareto Securities recommendations:

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