Indutrade Rises as SEB Says Profit to Increase: Stockholm Mover
Indutrade AB (INDT), a Swedish maker of engineering and industrial components, is set to reach its highest price ever in Stockholm trading after SEB AB raised its share price estimate because of an expected gain in earnings.
The stock rose 7 kronor, or 3.1 percent, to 236.5 kronor at 11:36 a.m. local time, rising for a third day. A closing at that level would mark the shares’ highest closing price since they started trading in 2005, giving the company a market value of 9.5 billion kronor ($1.46 billion). Stockholm, Sweden-based Indutrade’s shares have gained 20 percent so far this year.
SEB raised its price estimate on Indutrade to 269 kronor from 253 kronor and reiterated its buy rating, saying the investment case “remains strong,” according to a note to clients today. The bank raised its estimate for the margin of earnings before interest, taxes and amortization by 50 basis points for 2013 and 30 basis points for 2014 and 2015.
“Indutrade has a strong track-record in making successful acquisitions, which we expect to continue,” SEB said. “We view Indutrade a quality name in the industrial sales sector with high return on equity, good diversification in terms of sector sales exposures and a strong acquisition track record.”
The company yesterday reported an increase in second-quarter profit of 12 percent to 156 million kronor, while sales rose 6.2 percent to 2.28 billion kronor.
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