Frigoglass Jumps After Alpha Raises Price Target: Athens Mover

Frigoglass SA, a Greek supplier of custom-made refrigerator equipment, rose to the highest in 15 months after Alpha Finance increased its price estimate for the stock by 17 percent.

Frigoglass advanced as much as 8.2 percent to 5.79 euros, the biggest intraday gain in more than one month, and was up 39 cents to 5.74 euros as of 4:07 p.m. in Athens, the highest since Oct. 31, 2011. The stock has climbed 9.1 percent so far this year.

Alpha Finance increased its price estimate for the stock to 7 euros from 6 euros, citing the company’s higher cash flows due to lower working capital needs. The brokerage kept an “outperform” recommendation.

Frigoglass said Nov. 13 it intends to restore profitability and “significantly improve” cash-flow generation, after nine-month net income fell 69 percent to 6 million euros ($8 million).

Improvement in inventory management in the company “should improve the cash cycle and reduce working capital needs,” Nikos Katsenos, an analyst at Alpha Finance, said in a note to clients today. “This clean-up is expected to improve cash flows and reduce short-term financing needs”.

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