Nov. 7 (Bloomberg) -- Gedeon Richter Nyrt. recovered from a three-week low as Goldman Sachs Group Plc. raised the price projection for Hungary’s biggest drugmaker and KBC Groep NV said it was “more upbeat” on the company’s prospects.
The stock rose 0.1 percent to 40,310 forint by the end of trading in Budapest, with share turnover double the three-month daily average, according to data compiled by Bloomberg. Richter pared gains of as much as 0.8 percent after the European Commission cut its growth forecasts for the euro area.
Goldman increased Richter’s price estimate to 42,900 forint from 41,900, keeping its recommendation at neutral. The company expects a 3 percent increase in sales this year in euro terms, compared with an earlier estimate for no change, and it sees a more stable tax environment thanks to a deal with the government last week, Chief Executive Officer Erik Bogsch said yesterday.
Bogsch’s comments “made us more upbeat about the prospects of the company,” Gergely Palffy, a Budapest-based analyst at KBC Groep NV’s broker unit, wrote in a research report today.
Goldman raised its target because of a more positive outlook for the drugmaker’s profitability, according to a research report dated yesterday.
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