Jan. 7 (Bloomberg) -- Neste Oil Oyj, Finland’s only oil refiner, rose to the highest in more than two months in Helsinki after Danske Bank A/S said investors should stop selling the stock because of a better renewable fuel outlook.
Neste Oil jumped as much as 2.1 percent to 10.49 euros, the highest price since Oct. 25. The stock rose 1.3 percent to 10:40 euros at 3:05 p.m. in the Finnish capital with trading volume at 34 percent of the three-month daily average.
Neste Oil was raised to hold from sell today at Danske Bank on the outlook for its renewable fuels unit, which manufactures biodiesel and renewable aviation fuel using vegetable oil and waste fat from the food industry. The average 12-month price estimate of 18 analysts surveyed by Bloomberg is 10.23 euros, the highest since Nov. 12, when analysts estimated a target price of 10.25 euros.
“The preconditions for a positive Renewable Fuels outlook for the first quarter are in place, providing a possible share price trigger after 17 loss-making quarters in a row,” Danske Bank said in a note to clients. The current valuation means there is 6 percent potential upside to Danske’s 12-month price estimate of 11 euros.
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