Lerøy Seafood Group (OB:LSG) Valuation in Focus After Mixed Q3 Results and Strategic Outlook

Lerøy Seafood Group (OB:LSG) just released its Q3 2025 results, and there is a lot for investors to digest. The company saw its Farming segment pressured by low salmon prices and biological challenges, while its value-added operations reached record earnings.

See our latest analysis for Lerøy Seafood Group.

Shares of Lerøy Seafood Group have drifted down lately, with a 9.4% share price drop over the past month and a year-to-date decline of 7.2%. However, long-term investors have still seen a positive 12.5% total shareholder return over three years. The latest operational updates and the shift toward sustainable technologies appear to be influencing how the market weighs both risks and growth potential.

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Given the recent share price declines and the company’s renewed investments in sustainable growth, investors may be wondering if Lerøy Seafood Group is now trading below its true value or if the market has already priced in these future improvements. Is there still a buying opportunity, or has the growth outlook already been fully reflected?

Most Popular Narrative: 17.2% Undervalued

Lerøy Seafood Group's most widely followed narrative estimates a fair value noticeably higher than the recent closing price, reflecting optimism about future earnings momentum. With the market still wrestling with near-term pressures, this narrative makes some bold assumptions about the company's strategic strengths and operational outlook.

Record high earnings in the VAP, Sales & Distribution segment, supported by ongoing structural improvements and expansion into new markets (notably emerging markets and Asia), indicate the company's vertical integration strategy is working. This is likely driving higher overall revenue and improved margin stability going forward.

Read the complete narrative.

The financial engine of this valuation? It hinges on impressive projections for revenue acceleration and transformational margin expansion. What exactly are the analysts banking on? Only by reading the full narrative will you uncover the forecasts and critical targets that set this price apart from the market's current doubts.

Result: Fair Value of $55.17 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent inflation in energy and feed costs, combined with the risk of further declines in salmon prices, could threaten Lerøy's profit recovery narrative.

Find out about the key risks to this Lerøy Seafood Group narrative.

Build Your Own Lerøy Seafood Group Narrative

If you see things differently, or enjoy digging into the details yourself, you can craft a personalized narrative in just a few minutes. Do it your way

A great starting point for your Lerøy Seafood Group research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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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.

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