Breaking News

Tweet TWEET

Hufvudstaden Falls After Swedbank Cuts Rating: Stockholm Mover

Hufvudstaden AB (HUFVA), a developer and property manager in Sweden, declined the most in more than a month in Stockholm trading after Swedbank AB (SWEDA) said share-price gains may stall after surging since mid-April.

Hufvudstaden fell as much as 2 percent, the steepest decline since April 10. The stock has climbed by 12 percent in the last month, giving the company a market value of 20.1 billion kronor ($3.04 billion).

“The share has performed well recently, and we now consider the share as reasonably valued,” Swedbank analyst Andreas Daag said in a note to clients.

The company, which builds and manages offices and retail properties in Stockholm and Gothenburg, yesterday reported a decline in first-quarter profit after tax to 265.9 million kronor from 340.6 million kronor a year earlier. Vacancies increased to 5 percent from 3.9 percent.

The results were lower than expected for underlying earnings and vacancies, hurt by lower rental income and higher-than-expected property costs, Swedbank’s Daag said. He downgraded Hufvudstaden to neutral from buy.

Hufvudstaden was up 0.7 percent at 93.30 kronor as of 2:27 p.m.

To contact the reporter on this story: Katarina Gustafsson in Stockholm at kgustafsson@bloomberg.net

To contact the editors responsible for this story: Andrew Blackman at ablackman@bloomberg.net; Celeste Perri at cperri@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.