Why the Tassal Group Limited share price is sinking lower this week

Salmon producer Tassal Group Limited (ASX: TGR) has been one of the worst performers on the Australian share market this week with the price of its shares falling 9% to $3.64. The reason for the sharp decline can be attributed to broker Ord Minnett slashing its price target from $5.00 to $3.43.

The broker is incorporating lower export prices into its forecasting model following a 32% drop in international salmon prices since May.

The stock fell on heavy volume yesterday with 5.89 million shares swapping hands and managed to hit a new 52 week low of $3.45 before bouncing. During FY17, Tassal battled difficult domestic conditions with revenue from Australia declining 2.8% to $401 million. The company’s focus on export markets resulted in a 238% increase in export revenues to $44 million which helped fuel an increase in the company’s bottom line.

The bad news was not just limited to Ord Minnett, with broker JPMorgan also downgrading Tassal to underweight.

Interestingly, Ord Minnett also slapped a buy rating on Tassal’s major rival  Huon Aquaculture Group Ltd (ASX: HUO) with a $5.81 price target, inferring a 35% gain from Huon’s current price of $4.30.

Forget Silicon Valley, These 3 Aussie Firms are Taking Over the World

SEEK Ltd, REA Group and Cochlear Ltd made up the first wave of ‘tech disruptors’ that revolutionised their respective industries and made early investors extremely rich.

Now, a second wave of small, innovative Aussie companies are making their push to take on established giants.

Make no mistake, these are the companies to watch in 2018 and could very well become the next tech giants of Australia over the coming years. Go here for more!

Motley Fool Contributor Tim Katavic has no financial interest in any company mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.