Scania Falls as Barclays Cites Unease on Europe: Stockholm Mover
Scania AB (SCVB), the Swedish truckmaker controlled by Volkswagen AG (VOW), fell the most in more than a month in Stockholm trading as Barclays Plc said it’s concerned about the company’s reliance on European markets.
Scania declined as much as 1.6 percent, its steepest intraday drop since Dec. 13, and fell 0.4 percent to 137.4 kronor at 1:12 p.m. local time. Today’s trading volume was less than 40 percent of the three-month daily average.
Michael Tyndall and Kristina Church, London-based analysts at Barclays, today cut Scania shares to underweight from equal- weight with a new share price estimate of 113 kronor. Europe, where demand is slumping amid the sovereign debt crisis, rising unemployment and austerity measures, accounted for 60 percent of Scania’s third-quarter sales, according to data compiled by Bloomberg. Tyndall and Church said they’re “uneasy” about a number of factors at Scania, they said.
“Much as we want to be positive on Scania, we can’t get around the valuation, its geographic bias to ailing Europe and the changing competitive environment,” they wrote in a note to clients today. “We struggle to see much volume improvement in 2013 and also wonder how an aging R-Series, its main product, will fair against a newish Mercedes Actros and new Volvo FH.”
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