The world’s largest and most valuable salmon farming company rises to new heights.
Mowi has climbed at its highest level ever, just after stock market opening Monday morning.
The share was last traded at NOK 209.60 (EUR 2.14). This means a market capitalisation of EUR 11 billion.
According to Pareto Securities, Mowi will be able to earn EUR 1.5 per share in 2019, which implies a so-called P / E at 14 times. The broker house also expects a cash dividend of NOK 11.91 (EUR 1.21) which gives a dividend yield of 5.7 per cent.
The brokerage house believes there is more to go for Mowi. The course target is calculated at NOK 230 (EUR 23.5) with a buy recommendation.
According to a report analyst Kjetil Lye at Handelsbanken Capital Markets has had nothing but “buy” or “accumulate” on the Mowi share over the past nine years.
“Lyes estimates that this year is somewhat higher than consensus, so P / E will be 13”.
“We expect a direct return of 6.5 per-cent in Mowi,” said Lye, adding: “Mowi has growth opportunities in Norway and Canada, plus something in the other regions. There you have at least opportunities for growth over the next three years. At the same time, a stronger market will lead to higher salmon prices in the next few years. Yes, the multiples are relatively high, but we believe in rising salmon prices and growth in earnings in the years to come,” he said.
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