Gerresheimer AG, a German maker of glass and plastic products for the health-care industry, rose the most in six months after higher first-quarter sales prompted the company to raise its revenue forecast for this year.
Gerresheimer expects sales to increase by 7 percent to 8 percent this year, up from an earlier forecast for a gain of 5 percent to 6 percent, the company said in a statement today. The manufacturer maintained a forecast for adjusted earnings before interest, taxes, depreciation and amortization of 19.5 percent of sales. That measure declined to 16.5 percent in the first quarter, from 17.7 percent a year earlier.
The shares rose as much as 7.5 percent to 34.52 euros in Frankfurt trading, the biggest intraday jump since Oct. 6. The stock was up 4.4 percent at 10:23 a.m., giving Gerresheimer a market value of 1.06 billion euros ($1.39 billion).
“The increased sales guidance is a positive surprise, and it’s mainly due to strength in operating business,” said Edouard Aubery, an analyst at Equinet Bank AG in Frankfurt. “For this year, improving profitability in tubular glass will be key, as well as sales growth in plastic systems. Earnings momentum will increase, with the biggest improvement coming in the second half.” Aubery recommends that investors buy the stock and predicts it will rise to 37 euros within a year.
First-quarter sales at the Dusseldorf-based company rose almost 14 percent to 268.8 million euros, while net income declined 4.2 percent to 6.8 million euros.