July 17 (Bloomberg) -- Eltek ASA, a Norwegian maker of telecommunications equipment, climbed to the highest level in seven weeks in Oslo as a strong level of orders in the first half improves the earnings outlook for the rest of the year.
Shares in the Drammen-based company gained as much as 3.4 percent to 5.49 kroner, the highest intraday level since May 30, and traded 2.1 percent higher as of 1:30 p.m. local time. About 111,000 shares have been traded so far today, almost 45 percent more than the average daily volume during the last three months.
“Inflow was very strong in the quarter and they exited the quarter with a very strong backlog,” ABG Sundal Collier Holding ASA analyst Ole Petter Kjerkreit said by phone from Oslo. “Clearly estimates will be raised after this report.”
Eltek’s share price doesn’t currently reflect the company’s earnings potential, said the analyst, who reiterated his buy recommendation on the stock.
Eltek, which makes energy and transmission systems products for industries including telecoms, renewable energy and oil and gas, reported order entry of 1.02 billion kroner ($170 million) in the second quarter, up from 893 million kroner a year earlier, it said in statement today. It also expects revenue to show “sequential growth” in the second half, it said.
Shares in Eltek have gained 34 percent during the last 12 months, giving the company a market value of 1.8 billion kroner.
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