Royal Vopak NV, the world’s biggest chemical and oil storage company, dropped the most in a month in Amsterdam as UBS AG initiated coverage with a “sell” rating.
Vopak dropped as much as 3.5 percent to 49.24 euros, the biggest drop since Dec. 10. It was at 49.285 euros by 10:18 a.m. local time, valuing Vopak at 6.3 billion euros ($8.4 billion).
“Tank storage is fundamentally an attractive business, given its infrastructure characteristics and relative insensitivity to volume,” Dominic Edridge, a London-based analyst at UBS, said today in a note. “This success may now be a problem, as investment in the sector has grown substantially, which may mean lower returns.”
The storage company, based in Rotterdam, operates 84 terminals in 31 countries with a combined capacity of more than 29 million cubic meters.