At kr102, Is It Time To Put Aker BioMarine AS (OB:AKBM) On Your Watch List?

While Aker BioMarine AS (OB:AKBM) might not have the largest market cap around , it saw a significant share price rise of 43% in the past couple of months on the OB. The company is now trading at yearly-high levels following the recent surge in its share price. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s take a look at Aker BioMarine’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for Aker BioMarine

What's The Opportunity In Aker BioMarine?

Good news, investors! Aker BioMarine is still a bargain right now. According to our valuation, the intrinsic value for the stock is NOK169.45, but it is currently trading at kr102 on the share market, meaning that there is still an opportunity to buy now. Aker BioMarine’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

What does the future of Aker BioMarine look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with an expected decline of -7.5% in revenues over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Aker BioMarine. This certainty tips the risk-return scale towards higher risk.

What This Means For You

Are you a shareholder? Although AKBM is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. We recommend you think about whether you want to increase your portfolio exposure to AKBM, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping an eye on AKBM for a while, but hesitant on making the leap, we recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

Diving deeper into the forecasts for Aker BioMarine mentioned earlier will help you understand how analysts view the stock going forward. At Simply Wall St, we have the analysts estimates which you can view by clicking here.

If you are no longer interested in Aker BioMarine, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.