Nobia AB rose to its highest level in almost three weeks in Stockholm trading after Swedbank AB advised clients to buy shares in the maker of kitchen interiors amid a potential rebound in its Swedish and U.K. markets.
The stock advanced as much as 5.6 percent, to 36.10 kronor, its highest intraday level since March 25. It traded up 2.3 percent at 35 kronor at 10:05 a.m. local time. Volume was about 10 percent of the average daily trading over the past three months.
There has been “a clear turn” in the project market in Sweden that should add growth in the second half of this year and in 2014, Niclas Hoglund, an analyst at Swedbank in Stockholm, said in a note to clients. Even so, continental Europe is “the weak point” and the U.K. market is fragile, Hoglund said.
Swedbank upgraded the recommendation on Nobia to buy from neutral today. Stockholm-based Nobia has about 20 brands across Europe, including Marbodal and Sigdal in the Nordic countries, Magnet in the U.K. and Hygena in France.
“Weak consumer confidence in the U.K. and France and a cautious outlook ahead of the first quarter has pressured the shares, creating a buying opportunity given cost savings and pricing initiatives as well as cyclical rebound potential related to Sweden and the U.K.,” Hoglund said.