Pareto Securities repeats its Hold rating on fish farming company Grieg Seafood and cuts its target price to NOK 25 from 29.
The brokerage expects an operating profit of NOK -61 million in the third quarter following algae problems that are expected to wipe out this year’s profit. For 2027, it forecasts an operating profit of NOK 520 million.
The stock trades at a P/E ratio of 11.7 for 2027, which is not considered sufficiently attractive given the financing risks. Pareto sees a risk of a breach of loan covenants at year-end but expects a waiver.
