Poeyry Oyj fell to its lowest in almost six months in Helsinki trading after Danske Bank A/S and Nordea Bank AB lowered recommendations on the Finnish consulting and engineering firm’s stock after project delays.
Poeyry fell as much as 5.1 percent to 3.66 euros, the lowest level since Feb. 8, and retreated 4 percent at 3:07 p.m. in the Finnish capital. Trading volume was about 90 percent of the three-month daily average. The shares have gained 27 percent this year after losing three quarters of their value in the three years through 2012.
Future risks are “too high to regard Poeyry as an attractive turnaround case,” Danske analysts including Panu Laitinmaeki, said in a note to clients today, citing delays on new projects. Danske reduced its recommendation on Poeyry to hold from buy and lowered the 12-month price estimate to 4 euros from 5 euros. Nordea also said clients should hold the stock instead of buying and cut the price estimate to 4.20 euros.
Poeyry’s second-quarter sales fell an annual 14 percent, hurt by unexpected delays, the Vantaa, Finland-based company said yesterday. It reduced its full-year outlook last week, saying sales are “likely” to fall short of last year, compared with its previous estimate of an increase.
“Poeyry’s second-quarter was a disappointment as the expected earnings recovery failed to materialize,” Harri Taittonen, an analyst at Nordea, said in a note today. “We tone down our expectations.”