Topdanmark A/S (TOP) rose to a record in Copenhagen trading as Danske Bank A/S said Denmark’s second-largest listed insurance company will report “splendid” earnings next week.
Topdanmark rose as much as 1 percent to 148.90 kroner, the highest price since the 1985 public listing, when adjusted for stock splits. The share rose 0.7 percent to 148.40 kroner at 10:39 a.m. in Copenhagen with volume at 8.7 percent of the three-month daily average. The stock has jumped 22 percent this year, beating a 13 percent return by the Bloomberg Europe Insurance Index of 28 companies.
Topdanmark, which is due to publish earnings May 21, has exceeded analysts’ net income estimates in nine of its last 10 quarterly reports, according to data compiled by Bloomberg. Danske Bank today raised its price estimate on the share by 5.7 percent and said “strong” first-quarter results from peers, including Tryg A/S, bode well for Ballerup, Denmark-based Topdanmark.
“Topdanmark is likely to deliver splendid first-quarter earnings,” Danske said in a note to clients. The Copenhagen-based bank, which has a hold recommendation on the stock, raised its price estimate to 149 kroner from 141 kroner.
Topdanmark may report a first-quarter net income of 310 million kroner ($53.7 million), according to the average estimate in a Bloomberg survey of four analysts. That compares with a reported net income of 561 million kroner a year earlier.
Tryg, which is also based in Ballerup, reported on April 30 first-quarter net income of 575 million kroner, beating an estimate of 479 million kroner in a Bloomberg survey.
To contact the reporter on this story: Christian Wienberg in Copenhagen at firstname.lastname@example.org
To contact the editor responsible for this story: Tasneem Brogger at email@example.com