-First Securities cuts Norwegian Salmar price target.
M2 EQUITYBITES-August 22, 2011--First Securities cuts Norwegian Salmar price target(C)2011 M2 COMMUNICATIONS http://www.m2.com
22 August 2011 - First Securities has reduced the share price target on Norwegian salmon farmer Salmar ASA (OSL:SALM) to NOK50 from NOK55, while confirming the "buy" recommendation on the stock.
The second quarter was a very weak one for Salmar, whose production volume was 18-19% lower than expected, analyst Henning C. Steffenrud said, commenting on the company's interim report, published on Friday.
However, despite the challenging prospects in the short term, Steffenrud believes in the stock's long-term development. First Securities is confident of a comeback for Salmar, which is one of the most cost-effective salmon farmers in the world, the analyst said. The risk-reward ratio for the Norwegian company is attractive for medium- to long-term investors, he added.
By 15:10 CET on Monday, shares in Salmar had lost 5.75% to NOK 37.70 on the Oslo Stock Exchange.
(EUR1 = NOK7.9)
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|Date:||Aug 22, 2011|
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