May 8 (Bloomberg) -- Lenzing AG, an Austrian maker of cellulose fibers, rose the most in a week in Vienna trading on speculation prices have reached their lowest point.
The shares climbed 3.4 percent, the biggest intraday gain since April 30, to 63.68 euros as of 1:10 p.m. local time. Trading volumes were already 64 percent above the three-month daily average.
Lenzing, based in the Austrian town of the same name, makes fibers used in clothing and fabrics. Prices for some of its products have stopped falling, Bernhard Selinger, a Vienna-based analyst at Raiffeisen Centrobank AG, said in a note to clients today after the company reported first-quarter results.
Earnings before interest, tax, depreciation and amortization shrank by 31 percent to 64.5 million euros ($85 million) as lower prices eroded revenue, Lenzing said. It reiterated full-year guidance.
“In the light of today’s set of figures, we confirm our recently adjusted mid-term estimates,” Selinger said, upgrading his recommendation on the stock to buy on “very attractive share-price levels.”
While average fiber prices for Lenzing fell 3 percent from the previous quarter, the company’s Modal fiber may have bottomed at about 2.35 euros a kilogram, Selinger said, citing the introduction of high-end specialty applications.
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