WDH Falls as SocGen Sees Competition Squeeze: Copenhagen Mover

William Demant Holding A/S (WDH) fell the most among Copenhagen benchmark shares today after Societe Generale SA said investors should sell the stock because Denmark’s biggest hearing aid maker faces increased competition.

WDH fell as much as 1.9 percent, making it today’s biggest loser in the Nasdaq OMX Copenhagen 20 index. (KFX) The share dropped 1.8 percent to 457.90 kroner at 9:46 a.m. in the Danish capital with trading volume at 8.4 percent of the three-month daily average.

WDH, which repeated earlier this month a forecast that 2013 profits will rise, has doubled in market value in the last four years. Societe Generale, which started coverage of Smoerum, Denmark-based WDH with a sell recommendation, said the stock is overvalued as the company doesn’t pay dividends and probably will perform worse than consensus expectations.

“We expect the industry is likely to endure higher than average competition for the next two, three years,” analysts at Societe Generale, including Justin Smith, said in the note distributed late yesterday. “Furthermore, management doesn’t have a strong track record of delivering margin expansion.”

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

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