Atlantic Sapphire (Buy, TP: NOK60.00) - 2022e more back-end loaded
Atlantic Sapphire’s December update revealed harvest volumes of 1100tons in H2 2021 and guidance for 7kt in 2022. The harvest should be more back-end loaded than we expected and Q1 2022 price realisations were guided lower due to a higher share of downgrades. The new batches (which we believe to be the most important driver for the investment case) are progressing well, but the front-runner batches continue to weigh on performance. We reiterate our BUY, but have cut our target price to NOK60 (70).Atlantic Sapphire AS. Atlantic Sapphire AS is a Norway-based company, which farms Atlantic salmon in land-based recirculating systems in Denmark and the United States. The Company uses the production technology Bluehouse, which comprises the entire production cycle - from an egg hatchery to harvested fish ready for truck pick-up. Also, the Bluehouse implies production free of antibiotics, hormones, pesticides, metals and synthetic pigment. The product portfolio includes whole fish, as well as a range of fillets and cuts. The customers comprise primarily restaurants and retail stores on the Unites States market. Also, the Company exports products to such markets as Canada, Chile and Europe.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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