Elisa Oyj, Finland’s largest wireless carrier by subscribers, rose the most in 10 months as Danske Bank A/S raised its recommendation on the stock, citing easing price competition in the Nordic nation’s mobile market.
Elisa jumped as much as 3.9 percent, the biggest intraday gain since since July 13, and was trading up 3.3 percent at
14.89 euros as of 12:19 p.m. in Helsinki. Trading volume exceeded 80 percent of the three-month daily average.
“The worst is over in the Finnish mobile market as pricing appears higher in the second quarter,” analysts at Danske said today in a report to clients, upgrading their recommendation to hold from sell.
That view is supported by a meeting with DNA Oy, Finland’s third-largest operator, and Elisa’s recent decision to add a 2-euro monthly data charge to about 1 million customers who previously didn’t pay for it, the analysts said.
First-quarter net income at Helsinki-based Elisa totaled
40.1 million euros ($51.6 million), missing the average analyst estimate by 8.5 percent as sales were held back by promotions, including two-year mobile packages with the first year discounted by as much as 50 percent. Competitor TeliaSonera AB has signaled its intention to raise prices after aggressive promotional battles.
Elisa is trading down 11 percent this year after recovering from a 20-month low of 13.44 euros on April 19. Stockholm-based TeliaSonera rose as much as 3.2 percent today.