Sept. 19 (Bloomberg) -- Kloevern AB gained the most in almost five months in Stockholm trading after Swedbank AB upgraded the real estate company to strong buy from buy, citing the potential for mergers and acquisitions in the industry.
The shares advanced as much as 4.6 percent to 27.3 kronor, their steepest intraday gain since April 25. Kloevern rose 4.2 percent to 27.2 kronor as of 1:32 p.m. local time while the OMX All-Share Index added 1 percent. The volume traded was more than four times the daily average in the past three months.
Consolidation in the Swedish real estate industry should support income from property management and profit from property development, Niclas Hoglund, an analyst at Swedbank in Stockholm, wrote in a note to clients today.
“Strong cash flow bodes well for acquisitions in general,” Hoglund wrote. He kept his share price estimate for Kloevern’s shares at 32 kronor per share.
Of the 10 analysts who cover Stockholm-based Kloevern and share their ratings with Bloomberg, four advise clients to buy the shares while two have hold ratings and four have sell recommendations.
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