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Getinge Advances as Swedbank Upgrades to Buy: Stockholm Mover

Feb. 11 (Bloomberg) -- Getinge AB rose the most in almost a month in Stockholm after Swedbank AB advised investors to buy the stock after the maker of sterilization systems started a restructuring program.

The shares advanced as much as 2.6 percent, the biggest intraday gain since Jan. 14, and were up 2.1 percent to 193.4 kronor as of 1:17 p.m. local time. Trading volume was at 85 percent of the daily average in the past three months.

Getinge will make its Infection Control unit more effective by concentrating production to fewer plants, reviewing distribution and closing unprofitable product lines. The company will also make Extended Care more competitive by expanding production in lower-cost countries, according to a Feb. 8 statement. Swedbank upgraded its rating on the shares to buy from neutral today, with a price estimate of 210 kronor.

“Getinge is boldly addressing all its key issues in one go with a 750 million-krona restructuring program to reduce the cost-base, make innovation a strategic priority and reorganize the sales into a regional set-up,” Johan Unnerus, an analyst at the Stockholm-based bank, said in a note. “We upgrade early in this process, given a modest valuation, the track record and most importantly, Getinge’s portfolio of market-leading positions.”

To contact the reporter on this story: Niklas Magnusson in Stockholm at nmagnusson1@bloomberg.net

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net

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