WDH Gains as Goldman Says Shares Undervalued: Copenhagen Mover

William Demant Holding A/S (WDH) rose to its highest price in more than two weeks in Copenhagen trading after Goldman Sachs Group Inc. said shares in Denmark’s biggest hearing-aid maker are undervalued.

WDH gained as much as 1.9 percent to 487 kroner, the highest since Feb. 21. The stock added 1.8 percent to 486.50 kroner at 9:15 a.m. in the Danish capital, with trading volume at 43 percent of the three-month daily average.

WDH, which last month reported sales and profit that missed analyst estimates, had before today lost 1.2 percent of its 2012 market value. That compares with a 28 percent jump for its biggest Danish rival GN Store Nord A/S (GN) and an 11 percent increase in the Nasdaq OMX Copenhagen 20 index in the same period. In a note distributed today, Goldman raised its recommendation on WDH’s stock to buy from neutral.

“We believe that the stock’s recent underperformance has created an attractive entry point,” Veronika Dubajova said in the note.

The Smoerum, Denmark-based company on Feb. 26 reported 2012 revenue of 8.56 billion kroner ($1.49 billion), missing the average estimate of 8.66 billion kroner in an analyst survey. Net income fell to 1.15 billion kroner, missing the estimate of 1.19 billion kroner.

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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