Stora Enso Oyj, Europe’s biggest papermaker, fell the most in three weeks in Helsinki after Nordea Bank AB recommended clients sell the stock, citing weak demand for graphic papers.
Stora Enso slid as much as 2.5 percent, the most since June 24, and traded down 2.3 percent at 5.45 euros at 11:03 a.m. in the Finnish capital. Volume was 63 percent of the average daily trading over the past three months.
The market for graphic papers has remained under pressure, with weak advertising spending in print media during the spring, Harri Taittonen, Nordea analyst based in Stockholm, said in a note to clients. He reduced his rating on the shares to sell from hold, a “stretched” valuation after rebounding from a June low. He kept his target price of 5.30 euros.
Stora Enso shares have risen 14 percent from a low of 4.82 euros on June 24. The average 12-month price estimate of 10 analysts surveyed by Bloomberg has remained unchanged at 5.88 euros since June 4. Stora Enso reports second-quarter earnings on July 19 and investors will focus on its 200 million-euro ($262 million) cost-cut program, Nordea said.