DSV Stock Rises as SEB Sees Revival of Share Buyback Plan

DSV A/S (DSV) rose the most among Copenhagen’s benchmark stocks after an analyst at SEB AB said the Nordic region’s biggest trucking company will resume buying back stock as its industry role expands.

DSV jumped as much as 3.3 percent to 142.3 kroner, the strongest intraday gain since Oct. 25 and today’s biggest advance on the Copenhagen 20 Index. The stock was trading 1.8 percent higher at 12:14 p.m. in the Danish capital, with volume at 46 percent of the three-month daily average.

The transport operator said in February that it wouldn’t immediately introduce a new share buy-back program after purchasing 1.3 billion kroner ($228 million) of its own stock in 2012, to focus on preserving cash to reduce debt. DSV will probably resume the practice after its next earnings report following the announcement of its planned takeover of Seatainers Group A/S, SEB said today, raising its recommendation on the stock to buy from hold.

“We expect DSV to re-initiate its practice of quarterly share buybacks,” Mikkel M. Nielsen, a Copenhagen-based analyst with SEB, said in a note. DSV gained market share “from smaller, less efficient competitors in the first quarter of 2013, partly due to its strong foothold in northern Europe, Germany and eastern Europe,” and the company also reduced debt in line with targets.

DSV is scheduled to report first-quarter earnings on April 30. Sales probably rose 2.9 percent to 11.1 billion kroner and earnings before interest, tax, depreciation and amortization will advance 1.9 percent to 703.3 million kroner, according to the average estimate in a Bloomberg survey of seven analysts.

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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.