JM AB, a Swedish builder, rose for a fifth day, reaching its highest level in over 19 months in Stockholm, as Danske Bank A/S said Sweden’s residential housing market is improving earlier than anticipated.
The share rose as much as 5.25 kronor to 152 kronor, the highest level since July 2011. The stock was trading up 4.25 kronor, or 2.9 percent, to 151 kronor as of 10:48 a.m. in the Swedish capital, with trading volume 20 percent above the three-month daily average.
Danske upgraded JM to buy from sell as the “fundamentals are quickly turning more positive” for the residential market, the bank said in a note to clients. “Based on higher estimated activity and JM grabbing market share, we lift our estimates substantially.” The Danish lender raised its price estimate on JM shares to 168 kronor from 110 kronor.
JM, which is based in Stockholm, said yesterday it started building 29 percent more houses in the fourth quarter last year and that it sold 42 percent more residential units than a year earlier.
“More good news is that we were able to end 2012 on a good level in terms of sales and housing starts for residential projects, which means that we are entering into 2013 with a continued high level of current production,” the construction company said in a statement.
Nordea Bank AB raised JM to buy from hold today and assigned a 12-month price estimate of 165 kronor a share.