Investors remain shaken by land-based salmon farmer Atlantic Sapphire's fish-die-off on Tuesday, sending the Oslo-listed company's share price down an additional 3.28 percent compared to Wednesday's close.
The company, which boasts the highest market cap within the land-based salmon farming segment, loss 500 metric tons of fish at its Miami facility, blaming the die-off on a "weakness" in its recirculating aquaculture system.
Atlantic Sapphire's shares are currently trading at NOK 118 (€11.57/$13.64), setting the company's current value at NOK 9.52 billion (€934 million/$1.1 billion).
Around NOK 2.1 billion (€205 million/$242 million) has been wiped off the company's value in total since last week, after holding strong for the past few months.
Pareto Securities Seafood Equity Analyst Carl-Emil Kjolas Johannessen told IntraFish today's price could be a good buying opportunity.
"People become uncertain about how stable the operation will be in the future," Johannessen said. "The stock has been strong so far this year - when this happens you get a strong reaction down."
Johannessen refers to the incident as "one-off," citing the price dip as a "clear overreaction."
"In all biological production, one must reckon that something unforeseen happens, but that such a large proportion of production suddenly dies, I hope and believe that they will avoid that in the future," Johannessen said.
Pareto Securities keeps its 'buy' recommendation for the stock, with a target price of NOK 150 (€14.71/$17.33).
"However, it is obvious that the company must continue to prove that they will succeed in defending the share price," Johannessen said.
- Land-based aquaculture investors head for the exit, shedding $258 million off company values
- Analyst estimates 500,000 fish lost in Atlantic Sapphire die-off, shaving 20% off 2021 production
- 'It has to go through trial-and-error': Atlantic Sapphire's die-off proves land-based farming is not risk-free
- Land-based salmon producer Atlantic Sapphire suffers mortality incident at US farm