March 28 (Bloomberg) -- Kone Oyj, the Finnish elevator maker that supplied the world’s tallest clock tower in Mecca, rose the most since the start of the year as SEB Bank AB predicted growth for the company in China.
Kone gained 3.9 percent, the biggest advance since Jan. 2, to 61.35 euros at the close in Helsinki. Trading volume was almost 600,000 shares, more than one-third above the three-month daily average. It was today’s top performer among Finnish benchmark stocks.
“We expect the Chinese elevator market to continue to grow this year, supported by Kone’s view and recent Chinese statistics,” Tomi Railo, an analyst at SEB, said in a note today. He raised his recommendation to buy from hold, increasing the 12-month price estimate to 67 euros from 59 euros. “Recent share price weakness offers a good entry point for Kone.”
Kone had fallen 8.8 percent from its record peak of 64.75 euros from Feb. 14 to yesterday. The company has quadrupled its market value during the past four years, fueled by China’s construction boom. Chinese manufacturing is expanding faster than forecast, suggesting sustained recovery, according to a preliminary reading of an index from HSBC Holdings Plc and Markit Economics published last week.
The Helsinki-based company got 35 percent of its sales from the Asia-Pacific region last year, according to data compiled by Bloomberg.
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