Update shared on04 Oct 2025
Fair value Decreased 2.54%Analysts have slightly lowered their price target on P/F Bakkafrost from NOK 492.07 to NOK 479.58. This change is due to minor adjustments to revenue growth projections and updated profit margin expectations.
Analyst Commentary
Analysts have recently provided a range of views on P/F Bakkafrost following updates to their targets and ratings. Their commentary reflects a balance of optimism about Bakkafrost's positioning and caution regarding recent challenges in growth and profitability.
Bullish Takeaways- Bullish analysts have upgraded their stance on Bakkafrost, suggesting that downside risk may now be more limited after recent share price performance and forecast adjustments.
- There is recognition of stabilization in revenue trends, supporting the argument that Bakkafrost is positioned for steadier future execution and cash flow generation.
- Price targets, although lowered, remain close to current trading levels, indicating potential for modest upside if execution improves.
- Bearish analysts have shifted to a more cautious outlook, lowering price targets and ratings due to lower confidence in near-term earnings growth.
- Concerns remain regarding operating margins, with updated forecasts reflecting lower profitability expectations than previously anticipated.
- There is caution about costly competitive pressures within the industry, which could continue to weigh on valuation and limit share price recovery in the short to medium term.
What's in the News
- P/F Bakkafrost reported third quarter 2025 production results, with harvest volumes of 25,400 tons in the Faroe Islands and 5,300 tons in Scotland (Announcement of Operating Results).
- The company was added to the Oslo OBX Total Return Index, reflecting its growing market significance (Index Constituent Adds).
- Bakkafrost raised its production guidance for 2026 to 104,000 tonnes, citing strong developments this year in both the Faroe Islands and Scotland (Corporate Guidance: New/Confirmed).
Valuation Changes
- Consensus Analyst Price Target: Lowered from NOK 492.07 to NOK 479.58, reflecting a modest decrease in fair value expectations.
- Discount Rate: Held steady at 6.16 percent. This indicates no change to the risk premium applied in the valuation model.
- Revenue Growth: Trimmed slightly from 17.86 percent to 17.37 percent. This suggests a marginally more cautious outlook for near-term top-line expansion.
- Net Profit Margin: Increased from 19.68 percent to 19.89 percent. This highlights a small improvement in expected profitability.
- Future P/E: Decreased from 10.52x to 10.30x. This reflects a modestly more attractive valuation on projected earnings.
Disclaimer
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