GN Drops as Nordea Says New Aid Threatens Gain: Copenhagen Mover
GN Store Nord A/S (GN), the Nordic region’s second-largest maker of hearing aids, fell the most among Copenhagen’s benchmark stocks today after Nordea Markets said a new product line threatens recent gains.
GN fell as much as 1.1 percent, making it today’s biggest loser in the OMX Copenhagen 20 Index. (KFX) The stock of the Ballerup, Denmark-based company declined 0.8 percent to 75.10 kroner at 9:35 a.m. local time.
GN, which last week reported second-quarter revenue that beat analyst estimates, has risen 56 percent this year, making it 2012’s best performer in the C20 index. The increase reflects expectations that a restructuring plan will cut costs and that a new hearing aid line, to be introduced in September, will succeed, Nordea said today in a note to clients.
The new products will come with “a certain level of execution risk,” Jesper Bamberger, an equity adviser at Nordea Copenhagen, said in the note. “After the recent share price rally there’s no room for disappointments in the coming quarters and we think it’s time to take home the profit.”
Nordea recommends investors hold the stock after cutting its rating from strong buy last week.
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