GN Store Nord A/S topped gainers in Copenhagen’s benchmark index after Morgan Stanley said Denmark’s second-largest hearing aid maker will perform better than rivals William Demant A/S and Sonova Holding AG.
GN, based in Ballerup, Denmark, gained 1.1 percent to 109 kroner, making it the best performing stock in the OMX Copenhagen 20 index. Trading volume was 9 percent of the three-month daily average at 9:52 a.m. local time.
GN unveiled new additions earlier this month to its ReSound Verso hearing aid series at the American Academy of Audiology annual meeting. The “unique” product will help the device maker gain market share at the expense of Copenhagen-based Demant as new tenders are put out, Morgan Stanley analyst Michael Jungling said in a note today to clients.
“We would classify 2013 as a big tender year,” Jungling said. “Given the relatively smaller size, GN would see the biggest potential boost compared to Sonova and William Demant.”
The company’s forecast for sales growth of 4 percent to 6 percent is “conservative,” Jungling said. He has an overweight recommendation on GN and a price target of 115 kroner. Revenue may increase even more than his estimate of 6.7 percent, he said.