GN Store Nord A/S (GN), Denmark’s second-largest hearing aid maker, rose the most among Copenhagen’s benchmark shares after Morgan Stanley said the stock will recoup losses over the next 45 days.
GN rose as much as 2.6 percent, making it today’s biggest winner in the Nasdaq OMX Copenhagen 20 Index. (KFX) The stock rose 2.5 percent to 120.20 kroner at 12:46 p.m. in Copenhagen, with trading volume at 74 percent of the three-month daily average.
Before today, GN shares had declined 4.8 percent from an Aug. 23 peak, compared with a 0.3 percent gain in the C20 index in the same period. Morgan Stanley repeated an overweight recommendation, saying the recent stock decline makes the “short-term valuation much more compelling,” in a note to clients today.
“We believe the share price will rise in absolute terms over the next 45 days,” Michael Jungling, an analyst with Morgan Stanley, said in the note.
GN will benefit as it may introduce a planned hearing aid made for Apple Inc.’s iPhone at this month’s International Congress of Hearing Aid Acousticians, the bank said.
Citigroup Inc. last month started coverage of GN’s shares with a buy recommendation, saying the iPhone device will help the Ballerup, Denmark-based company outperform its competitors over the next 12 months.
Morgan Stanley has a 12-month price estimate of 130 kroner on GN shares, according to the note. That compares with an average target of 127 kroner among 17 analysts tracking the stock, according to data compiled by Bloomberg.
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