NKT Declines as Nordea Says Not Time to Buy: Copenhagen Mover
NKT Holding A/S (NKT) snapped a two-day advance in Copenhagen trading after Nordea Bank AB said it’s too early to buy the stock, arguing the Danish maker of industrial vacuum cleaners risks losing money on its price strategy.
NKT fell as much as 1.8 percent. The stock declined 1.7 percent to 230.80 kroner at 9:56 a.m. in the Danish capital with trading volume at 34 percent of the three-month daily average.
NKT, which this year unveiled plans to raise sales prices for its vacuum cleaners by about 2 percent to cover higher costs, said yesterday it is encountering delays in implementing the strategy. Nordea said today price issues for the NKT’s Nilfisk-Advance unit are “a concern” and repeated a hold recommendation on the stock of the Broendby, Denmark-based company.
An “unfavorable mix and increased price pressure in Europe” is causing a “weaker gross margin than forecast for Nilfisk-Advance,” Patrik Setterberg, a Copenhagen-based analyst with Nordea, said in a note to clients.
Setterberg said yesterday’s first-quarter earnings statement, in which NKT reported net income that missed analyst estimates, was “a mixed bag.” Earnings progress for NKT’s other unit, a cable division, is surrounded by “uncertainty,” he said.
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