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DSV Gains as Nordea Sees More Cash for Holders: Copenhagen Mover

DSV A/S rose the most in a week in Copenhagen trading after Nordea Bank AB said the Nordic region’s biggest trucking company will improve its cash flow and return more money to shareholders.

DSV rose as much as 1.1 percent, the most since Feb. 5. The stock advanced 0.8 percent to 138.60 kroner at 10:28 a.m. in the Danish capital with trading volume at 10 percent of the three- month daily average.

DSV, which is due to publish earnings Feb. 20, will report a 2.5 percent increase in 2012 net income, according to the average estimate in a Bloomberg survey of 12 analysts. Nordea today repeated a recommendation to buy the stock and raised its price estimate, saying profitability will be helped by the Broendby, Denmark-based trucker’s ability to limit costs amid “low-growth” market conditions.

“We also expect continued strong free cash flow generation and cash distribution,” Finn Bjarke Petersen, an analyst at Nordea in Copenhagen, said in a note to clients.

DSV’s free cash flow will rise to 2.2 billion kroner this year from 1.8 billion kroner in 2012, he said. That would allow a share buy-back plan amounting to about 2.4 billion kroner, after a dividend pay-out of 235 million kroner, Petersen said.

Nordea raised its share price estimate on DSV to 165 kroner from 145 kroner. The average 12-month target of 13 analysts covering the stock is 159 kroner, according to data compiled by Bloomberg.

To contact the reporter on this story: Christian Wienberg in Copenhagen at cwienberg@bloomberg.net

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

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