Sept. 11 (Bloomberg) -- GN Store Nord A/S rose to its highest price in two weeks after Citigroup Inc. said investors should buy the stock because the hearing aid maker’s new product made for Apple Inc.’s iPhone will boost revenue.
GN rose as much as 2.3 percent to 121.90 kroner, its highest trading price since Aug. 26. The stock rose 1.3 percent to 120.70 kroner at 9:45 a.m. in Copenhagen with trading volume at 26 percent of the three-month daily average. The gain made it today’s biggest winner in the Nasdaq OMX Copenhagen 20 Index.
GN repeated last month that the hearing aid, which will be able to connect wirelessly to the iPhone, will be introduced before the end of this year. Citigroup started coverage of GN today with a buy recommendation and said the iPhone device will help the Ballerup, Denmark-based company outperform its competitors over the next 12 months.
“The compatibility with the iPhone could be a major driver of share gains, particularly in the U.S., where we estimate that there are already about 6 million hearing aid users who also own an iPhone,” Jonathan Beake, a London-based analyst at Citigroup, said in a note. “Our analysis suggests that each 5 percent increase in GN’s share amongst this group will boost group revenue growth by 1 percentage point.”
Citigroup set a price estimate of 140 kroner on the GN share, which compares with an average target of 127 kroner among 17 analysts covering the stock, according to data compiled by Bloomberg.
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