Chr. Hansen A/S (CHR) rose the most in four days to rank second among gainers in Copenhagen’s benchmark index after Societe Generale and J.P.Morgan Cazenove said a second-quarter profit slide doesn’t reflect the enzyme maker’s “good” prospects.
Chr. Hansen, the world’s biggest maker of dairy enzymes, rose as much as 2.8 percent, the most since April 8. The share traded up 0.7 percent at 197.80 kroner at 12:02 p.m. in the Danish capital, making it the second best performing stock in the OMX Copenhagen 20 index. Trading volume was 141 percent of the three-month daily average.
Chr. Hansen reported yesterday a 33 percent drop in net income for the three months ending Feb. 28 after writing down clinical studies that failed to show health benefits from probiotic products. The Hoersholm, Denmark-based company, which maintained its full-year forecast, fell 7.4 percent.
While second-quarter results were disappointing, “Chr. Hansen’s mid-term earnings growth outlook remains good, helped by innovations and reinvestments in the business,” J.P.Morgan Cazenove analyst Ankur Gupta said in a note. He reiterated an overweight recommendation on the share.
Societe Generale upgraded its recommendation from sell to hold and increased its price target to 205 kroner per share from 190 kroner, saying “the outlook for Chr. Hansen’s core businesses is improving.”
“Successful innovations are widening the potential application of Chr. Hansen’s cultures outside of yogurt,” Societe Generale said in a note to clients.
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