Getinge Declines as BofA Sees U.S. Uncertainty: Stockholm Mover
Getinge AB (GETIB), the world’s largest maker of sterilization systems, declined the most in two months in Stockholm trading after Bank of America Corp. said it sees limited future gains for the shares and uncertainty in the U.S.
The stock lost as much as 5 kronor, or 2.2 percent, to 220.1 kronor, its steepest intraday decline since Nov. 5. It was down 2 percent at 220.7 kronor as of 10:07 a.m. local time. The number of Getinge shares traded in Stockholm today represented 29 percent of the average three-month daily volume.
While Getinge “offers double-digit earnings growth, supported by an improving sales mix, restructuring and a sound M&A strategy,” the stock “outperformed in 2012 and we see more limited near-term upside with uncertainty around U.S. capital equipment spending in light of healthcare funding cuts,” Ed Ridley-Day and Justin Morris, London-based analysts at Bank of America Merrill Lynch, wrote in a note to clients today.
Morris cut his rating on Getinge to neutral from buy, saying he sees “greater opportunity” elsewhere in the industry. While he raised his 12-month share price estimate to 235 kronor from 220 kronor, the new target still only represents 4 percent upside from current trading levels, said Morris. The stock gained 26 percent last year, compared with a 14.4 percent gain in the Stoxx 600 Europe Index, said the analyst.
To contact the editor responsible for this story: Toby Alder at firstname.lastname@example.org