Novozymes Gains as Morgan Stanley Sees Value: Copenhagen Mover

Novozymes A/S (NZYMB), the world’s largest maker of enzymes used to produce biofuel, led today’s biggest gainers among Copenhagen’s benchmark stocks after Morgan Stanley said the biobusiness unit is undervalued.

Novozymes rose as much as 1.7 percent, making it the biggest winner in the OMKXC20 Index (KFX) of 20 companies. The stock advanced 1.4 kroner, or 0.9 percent, to 162.50 kroner at 11:07 a.m. in the Danish capital.

Bagsvaerd, Denmark-based Novozymes plans to boost the unit’s revenue six-fold by 2018 partly through acquisitions. The division, which makes microorganisms used for fertilizers and wastewater treatment, may be worth as much as 50 kroner a share, Allen D. Wells, a London-based analyst with Morgan Stanley, said today in a note.

“Novozymes’ biobusiness is underappreciated as a key medium-term growth and profit driver for the group,” Wells said in the note. He increased his price estimate on Novozymes shares to 200 kroner from 190 kroner and repeated a recommendation to overweight positions in the stock.

The division, which also develops biopharmaceutical ingredients for drugmakers, had sales of about 1 billion kroner ($170 million) in 2011, according to Novozymes’ annual report.

To contact the reporters on this story: Christian Wienberg in Copenhagen at cwienberg@bloomberg.net; Gelu Sulugiuc in Copenhagen at gsulugiuc@bloomberg.net

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net

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