May 10 (Bloomberg) -- AS Olainfarm, a Latvian drugmaker with sales in 30 countries, extended record gains as Swedbank AB raised its share-price estimate for the stock after the company got a tax break from the government.
The stock rose as much as 4.5 percent in Riga and closed up 2.7 percent at 5.01 lats, the highest since trading began in 1998. Volume of 9,782 shares was the equivalent of 183 percent of the three-month daily average, according to data complied by Bloomberg. The shares have jumped 36 percent this year, extending last year’s 50 percent increase and valuing the company at 70.6 million lats ($131 million).
Swedbank raised its price estimate to 5.1 lats from 4.8 lats after Olainfarm said on May 8 that the Latvian government had given it a tax exemption of as much as 5.2 million lats for investments in new products and capacity.
The bank cut its recommendation to neutral from buy, citing “the recent rally in the share price,” Marek Randma, head of Baltic equity research, said in a note yesterday, when the Latvian stock market was closed for a European holiday.
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