Investing.com -- Goldman Sachs named SalMar its preferred salmon producer, citing stronger growth prospects and room to improve production capacity utilisation, while maintaining a neutral stance on rival Mowi as regulatory constraints limit its earnings upside.
The bank expects SalMar to benefit from exposure to faster-growing Norwegian production regions, with volumes forecast to rise at a 7% compound annual growth rate from 2026 to 2029. A recovery in Central Norway after disruptions in 2025, combined with better pricing, utilisation and cost efficiencies, is expected to drive a sharp earnings recovery.
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Goldman forecasts a 41% compound annual growth rate in SalMar's earnings per share over 2026-29. The stock, rated Buy with a NOK 700 price target implying 22% upside, trades at 16.7 times forward earnings, broadly in line with its five-year average. The bank also sees potential for mergers and acquisitions to provide an additional growth lever.
Mowi, meanwhile, was rated Neutral with a NOK 220 price target, implying 8% upside. Goldman expects its diversified production footprint and operational efficiency to support a 3.4% organic volume CAGR through 2026-29, but sees a more limited path to earnings growth.
Norway's production regulations, Canada's planned phase-out of net-pen farming and potential El Niño-related risks in Chile could weigh on Mowi's volumes, the bank said. Its cost-saving programme and feed partnership are expected to help offset higher feed costs, while its branded products should support longer-term profitability.
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