MHGVY - Mowi Continues To Perform Is Fairly Valued And An Opportunity Below These Prices
2024-04-22 12:27:46 ET
Summary
- Mowi ASA is the world's largest producer of farmed salmon.
- The company is operationally excellent but faces structural limitations to growth, just like the salmon industry in general.
- In this review of FY23 results, the author continues to find excellent operations, and analyzes the effect of Norway's resource rent tax.
- The article also analyzes the strategic alternatives that Mowi has to continue increasing profits and production despite the structural limits of the industry.
- The author considers the stock to be fairly valued, but prefers to wait for lower prices before considering it an opportunity.
Mowi ASA ( MHGVY ) is the world's largest producer of farmed salmon.
I started coverage of Mowi in December 2023 , with a Hold rating. My thesis was that Mowi had outstanding operations and global leadership in the industry. However, I also considered that the company faces technical/biological limits to production growth and that extraordinary rents would attract capital-intensive competitors to the market. The multiples of current earnings implied too much growth, making the stock not an opportunity....
Mowi Continues To Perform, Is Fairly Valued, And An Opportunity Below These Prices