TDC A/S fell the most in more than three weeks in Copenhagen trading after Berenberg said the rate at which the phone company is losing customers should prompt investors to sell their shares.
TDC fell as much as 2.6 percent to 46.71 kroner, the most since May 2, making it the biggest loser on the Copenhagen benchmark index. The stock declined 1 percent to 47.50 kroner at 10:29 a.m. in the Danish capital, with trading volume at 17 percent of the three-month daily average.
“While valuation looks decent in the near term, as we look further out TDC is expensive,” said Barry Zeitoune, an analyst at Berenberg, in a note to clients. “With the risks arguably skewed to the downside, given mobile issues and slowing cable growth, on balance we feel its right to downgrade.”
Berenberg advised clients to sell shares in TDC, removing a previous hold recommendation in place since March 26, when the shares were downgraded from buy. The bank’s target price on the Danish telecommunications operator was cut to 42 kroner from 46 kroner.
Editors: Tasneem Brogger, Christian Wienberg.