Nobia AB (NOBI), the Swedish maker of kitchen interiors, fell the most in more than eight months in Stockholm trading after Danske Bank A/S said sales may contract this year as European demand shows little sign of rebounding.
Nobia fell as much as 6.1 percent, the most since June 13. The shares declined 5.3 percent to 35.80 kronor at 12:18 p.m. local time, with trading volume at about half the daily average of the past three months.
Danske cut its rating on Nobia to sell from buy, estimating sales will drop 7 percent in 2013, according to a note by analyst Anders Hansson today. Stockholm-based Nobia has about 20 brands across Europe, including Marbodal and Sigdal in the Nordic countries, Magnet in the U.K. and Hygena in France.
“Recent statistics from Sweden suggest that consumers haven’t been this unwilling to undertake housing renovation since the collapse” of Lehman Brothers Holdings Inc. in 2008, Hansson said in the note. “U.K. kitchen demand is at historical lows and we can’t spot any imminent improvements. The French market seems locked in a 20 percent to 30 percent decline, making it a great effort just to keep sales flat.”
The “latent margin boost from a pick-up in volumes is likely to be delayed beyond 2013,” Hansson said.
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