Palfinger Climbs as UBS Sees Better Truck Sales: Vienna Mover
Palfinger AG (PAL), the world’s biggest maker of truck-mounted knuckle-boom cranes, rose to the highest level in 17 months in Vienna after UBS told clients to buy the stock to benefit from better truck sales.
Palfinger, based in Salzburg, Austria, rose as much as 6.4 percent in the Austrian capital and traded up 6 percent at 20.80 euros by 12:05 p.m., the highest intraday level since August 2011. The share has gained 27 percent this year, giving it a market capitalization of 743 million euros ($996 million).
“Palfinger offers a good opportunity for investors to play the European truck recovery and pre-buy story ahead of new emission standards next year, without being directly exposed to truck makers,” Frankfurt-based UBS analyst Sebastian Ubert wrote in a note to clients, in which he raised his recommendation on Palfinger to buy from neutral.
Palfinger, which sells its cranes mainly to builders and freight-transport companies, last year expanded to China to tap into a building boom there. The company predicted a small revenue increase for 2012, coming from business areas outside of Europe.
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