Ramirent Oyj, which rents equipment including scissor lifts and tower cranes, rose to the highest price in almost a year in Helsinki trading after Danske Bank A/S said an increase in demand will buoy the shares.
Ramirent rose as much as 4.1 percent to 8.07 euros, the highest intraday price since March 5. The shares were up 3.9 percent at 8.05 euros as of 12:35 p.m. in the Finnish capital, with trading volume more than three times the three-month daily average.
“Given indications of largely stable pricing in Nordic machinery rentals and likely improvement in volume outlook for 2014, we lift our target price to 9.5 euros a share and keep our buy rating,” Danske Bank analysts said in a note to clients today. Even so, earnings will decline in the first six months, they said.
In southern Finland and northern Sweden, demand is good for construction equipment for industrial building, Chief Executive Officer Magnus Rosen said on a conference call yesterday. Overall demand is good in Stockholm, western Sweden and Norway, he said. Finland, Sweden and Norway account for about 75 percent of Ramirent’s sales.
“It’s in general a good business atmosphere in Norway,” Rosen said. “Sometimes the sky is the limit.”