WDH rose as much as 1.9 percent, making it today’s biggest gainer in the Nasdaq OMX Copenhagen 20 index, which fell as much as 0.6 percent. WDH shares added 0.9 percent to 534 kroner at 11:06 a.m. in the Danish capital with trading volume at 54 percent of the three-month daily average.
WDH, which is scheduled to published a third-quarter trading update on Nov. 5, has missed analysts’ average net income estimates in seven of its last eight half-year earnings reports. Berenberg started coverage of the stock with a buy recommendation, saying it prefers WDH over Sonova Holding AG (SOON) as the Smoerum, Denmark-based company is set to increase earnings and is “well-positioned” to gain market share.
“We believe William Demant is on the cusp of a significant acceleration in earnings growth that is not factored into expectations or the share price,” Tom Jones, an analyst at Berenberg, said in a note distributed today. WDH will be helped by “new products, easing of reimbursement headwinds, entry into new adjacencies, margin expansion, a falling tax rate and channelling of excess capital into buybacks.”
Berenberg set a price estimate of 605 kroner on the WDH share, the highest among 21 analysts tracking the stock, according to data compiled by Bloomberg. The average price target is currently 487 kroner and WDH has traded above the average since the beginning of July, according to the data.
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