TDC A/S rose the most in 19 months in Copenhagen trading after Morgan Stanley picked Denmark’s biggest phone company as one of its favorite telecommunication operators outside the euro area.
TDC rose as much as 4.7 percent, the most since Aug. 10, 2011, making it today’s biggest winner in the Copenhagen 20 Index. The stock advanced 3.5 percent to 45.33 kroner at 10:38 a.m. in the Danish capital with trading volume at 117 percent of the three-month daily average.
TDC, which last month said revenue and profit will decline this year, will benefit as the Danish mobile phone market becomes more “rational” and competition eases, Morgan Stanley said today in a note to investors. The bank raised its recommendation to over-weight from equal-weight and said the stock will enjoy support from the Copenhagen-based company’s dividend payments.
“Of the defensive non-eurozone telecommunication stocks, we believe TDC offers the best combination of fundamentals and valuation,” Morgan Stanley analysts, led by Terence Tsui, said in the note. The bank raised its price estimate to 53 kroner from 47 kroner.