Pareto Securities downgrades its recommendation for Norwegian salmon farmer Lerøy Seafood to Hold from Buy after the third-quarter results. The price target is reiterated at NOK 46.
The company’s operating profit of NOK 459 million exceeded
analyst consensus by NOK 21 million, thanks to stronger market operations that offset weaker farming results.
However, the volume forecast for 2027 of 195,000 tonnes was 1,700 tonnes below consensus. At the same time, the midpoint of the full-year forecast for Wild Catch was lowered by NOK 92.5 million.
Pareto cuts its operating profit forecasts by 3 percent for 2026 and 1 percent for 2027.
“The valuation is not particularly demanding, but both the P/E ratio based on the past twelve months and the forward P/E ratio for the next 24 months now stand higher than and in line with the historical trading range, respectively, despite consensus forecasts likely being revised downwards in the short term (particularly for the fourth quarter due to a slower recovery in
salmon prices so far this quarter). Following a rise of +4.2 percent on the back of a neutral report, we therefore move to Hold,” Pareto writes.
