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B&O Falls as Nordea Says TV Dependency a Risk: Copenhagen Mover

Aug. 19 (Bloomberg) -- Bang & Olufsen A/S fell to its lowest price in more than two weeks in Copenhagen trading as Nordea Markets said the Danish luxury stereo and television set maker is too dependent on revenue from a toughening TV market.

B&O fell as much as 2.7 percent to 54.50 kroner, its lowest since Aug. 2. The stock declined to 55.50 kroner at 9:45 a.m., with volume at 36 percent of the three-month daily average.

B&O reported Aug. 16 a fourth-quarter net loss, the third loss in the past four quarters, as revenue plunged 15 percent. While the Struer, Denmark-based company has introduced new products that may boost growth, TV sales are “a key risk” for the stock amid toughening competition, Nordea said today. The bank repeated a sell recommendation.

“Selling prices are likely to come down further, and we are unsure if volume growth will be able to compensate for this,” Dan Kirk Wejse, a Copenhagen-based analyst with Nordea, said in a note. “Consequently, we expect AV revenue to decline further in the coming years.”

To contact the reporter on this story: Christian Wienberg in Copenhagen at cwienberg@bloomberg.net

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net

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