Securitas Gains as Credit Suisse Sees Growth: Stockholm Mover
Securitas AB (SECUB) rose the most in almost two weeks in Stockholm trading after Credit Suisse Group said the profitability of the world’s second-biggest guarding services provider should improve in coming quarters.
Securitas advanced as much as 0.8 krona, or 1.4 percent, to 58.6 kronor, its highest intraday level since Jan. 2. The stock traded 1.2 percent at 58.5 kronor at 12:04 p.m. local time, with volume at 42 percent of the three-month daily average.
Credit Suisse raised its rating on Stockholm-based Securitas to outperform from neutral and its 12-month share price estimate to 69 kronor from 58 kronor, according to a note to clients today. Securitas said in October that it would cut 400 jobs in Europe and the U.S. to save 300 million kronor ($46.5 million) as it merges its mobile and monitoring unit to reduce costs.
“After two years of declining EPS we think that Securitas’s cost reduction program plus the annualisation of a series of one-off costs incurred in 2012 can return the business to EPS growth,” Andrew Grobler, a London-based analyst at Credit Suisse, said in the note. “Rising profitability will, we believe, also allow Securitas to return to its acquisitive strategy, which should generate incremental value for the business.”
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