- Mowi is the largest player globally within salmon farming, a fully integrated company that is significantly larger than its geographical peers.
- Supply and demand dynamics for this niche industry is very attractive making it a profitable industry for its operating companies.
- Salmon prices collapsed in 2020 due to restaurant, hotel and catering shutdown causing a 55% collapse in EPS for Mowi.
- We have seen recent signs of a price recovery, but the outlook remains uncertain and will be the main driver of profitability and stock price movements.
- The stock is priced for best case recovery and I caution a ‘hold’ as it’s still too uncertain at this point.
For further details see:
Mowi Is The Largest Operator In An Interesting Niche With Great Prospects