Jan. 29 (Bloomberg) -- Loomis AB, the cash-handling unit spun off from Securitas AB, dropped the most in almost 12 weeks in Stockholm trading after SEB AB downgraded the shares and said Loomis probably saw falling volumes in the fourth quarter.
Loomis fell as much as 3.2 percent, its steepest intraday drop since Nov. 9, and declined 3 percent to 105.25 kronor as of 11:19 a.m. in Stockholm. Trading volume was at 36 percent of the daily average in the past three months.
The company’s “strong price performance over the past three months has reduced the upside,” Stefan Andersson, a Stockholm-based analyst at SEB, said in a note to clients today, adding he was downgrading the rating on the stock to hold from buy. Sales from Loomis’s existing operations probably declined in the fourth quarter because of a lost contract in France and difficult market conditions in Spain, he said.
Loomis is expected to report fourth-quarter net income of 196 million kronor ($30.6 million) when it reports earnings on Feb. 6.
“For 2013 we see prospects of growth again, driven by Loomis gaining a significant contract in France, gaining some market share in Sweden, and from annual price increases at the start of the year,” Andersson said.
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