Atlantic Sapphire (Buy, TP: NOK70.00) - Capex flexibility for phase-2
Atlantic Sapphire’s Q3 trading update included a harvest volume of 700t (600t our est.) but a lower realised price, with 40% of premium price volumes not yet sold, but rather in frozen and smoking programmes. However, we believe our H2 2021 realised price estimate still looks achievable. Details on committed and uncommitted capex for phase-2 suggest some flexibility in securing liquidity, in line with our view. The ramp-up of volumes from phase-2 will start materialising in H2 2023 according to management, c6 months later than we estimated. We reiterate our BUY and NOK70 target price.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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.