REDUCED: Mowi is downgraded by several brokerages after the quarterly report. Foto: Bloomberg
10:39 – 5 Nov. | Updated 11:00 – 5 Nov.
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Several brokerages are downgrading the price target on Mowi after the company presented a third quarter report on Wednesday, according to TDN Direkt.
Mowi achieved an operating profit of 80 million euros in the third quarter of 2020, compared to 148 million euros in the same period last year.
According to the report, the company’s results were strongly affected by corona measures and seasonally high volumes.
– Operations have been almost normal during the quarter despite increased infection control measures. However, Covid-19 has a negative effect on demand in the HoReCa market, and although demand in groceries has been very good, net demand is down in the quarter with falling prices and earnings as a result, says Mowi CEO Ivan Vindheim.
DNB Markets downgrades the price target on Mowi to NOK 185 from NOK 195, but they keep the buy recommendation. Meglerhuset thinks the volume guidance for 2021 is disappointed, but points out that the management sees flat costs in the fourth quarter.
ABG Sundal Collier, which also has a buy recommendation on Mowi, lowers the price target to NOK 195 from NOK 208 per share on assumptions about lower long-term volumes.
SEB downgrades their price target on Mowi to NOK 204 from NOK 211 while retaining the buy recommendation.
Arctic Securities downgrades the price target to 170 kroner from 175 kroner and retains team recommendation. They point out that the coronavirus affects salmon prices and the downward adjustment is made on the basis of high uncertainty in the short term.
Danske Bank Markets repeats its buy recommendation, but downgrades the price target on Mowi to NOK 208 from NOK 212 at a lower than expected volume guide from Canada in 2021.
At the time of writing, Mowi is trading at NOK 150.50 on the Oslo Stock Exchange.
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