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Balder Slides as Nordea Lowers Rating to Hold: Stockholm Mover

July 9 (Bloomberg) -- Fastighets AB Balder, a property owner and manager in Sweden, dropped the most in almost a week in Stockholm after Nordea Bank AB downgraded its rating on the stock, saying its competitors offer a better valuation.

Shares in Balder declined as much as 1.5 percent, the most since July 3. The stock traded 1.5 percent lower at 50 kroner as of 2:30 p.m. local time, giving the Gothenburg-based company a market value of 12 billion kronor ($1.8 billion). The benchmark OMX Stockholm 30 index was up 0.9 percent.

Balder, which had real estate holdings worth 22.5 billion kronor at the end of March, has seen its shares jump 34 percent since the start of the year as household lending in Sweden climbs. Balder has said its ambition is to be a long-term owner.

While Balder’s price-to-net asset value is now only at a minor discount compared to its competitors, the expectation of a “solid performance” in the future is discounted in the share, Catrin Jansson, an analyst at Nordea Bank AB in Stockholm, said in a note. “Given this, we see more attractive picks in the Nordic real estate sector,” such as Klovern AB and Kungsleden AB, she said.

The Swedish bank cut its recommendation on Balder to hold from buy, while maintaining its price estimate at 53 kronor.

To contact the reporter on this story: Adam Ewing in Stockholm at aewing5@bloomberg.net

To contact the editor responsible for this story:

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