BayWa Rises Most in Year Ahead of Presentations: Frankfurt Mover
Stock Chart for BayWa AG (BYW)
BayWa AG (BYW), a German distributor of farm products and building materials, rose the most in a year as investors bet on positive news from presentations scheduled for a capital markets event starting tomorrow.
BayWa said last month it’s buying Rotterdam-based grain trader Cefetra BV and a majority stake in German agricultural trader Bohnhorst Agrarhandel GmbH to become an international grain trader and lift annual sales to at least 15 billion euros ($19.5 billion). The company generated revenue of 9.6 billion euros last year.
“BayWa hasn’t said much on future strategy or profitability of the companies to be bought since announcing those acquisitions,” said Bjoern Lippe, an analyst at Berenberg Bank in London, who recommends buying the shares. “Many analysts have not incorporated the earnings potential from the deals into their models, and investors may now be buying positions ahead of what they expects will be good news from the capital market day.”
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