GN Hits 12-Yr High on Morgan Stanley Target: Copenhagen Mover
GN Store Nord A/S (GN) rose to the highest in twelve years in Copenhagen trading after Morgan Stanley & Co increased its target price on bets the hearing device maker’s new products may exceed expectations.
GN rose as much as 3.9 percent to 104.80 kroner, the highest since May 2001 at 11:49 a.m. local time, with trading volume at 64 percent of the three-month daily average. The advance made the company today’s biggest winner in the OMX Copenhagen 20 index.
Revenue may grow as much as 12 percent this year, helped by sales of new headsets and hearing aids, GN said Feb. 21. Michael Jungling, an analyst at Morgan Stanley, today increased his sales forecast to growth of 8 percent from 6 percent.
“GN’s improving track record and a strong product pipeline give us comfort that GN should meet or even exceed our raised 2013 forecast,” Jungling said in a note to clients. “GN’s new high-end hearing aid product cycle is off to a good start and we believe this trend can continue in fiscal year 2013.”
Jungling raised his 12-month target price for GN shares to 110 kroner from 90 kroner, and kept his overweight recommendation, implying the shares have an upside of 9 percent from Friday’s closing price of 100.90 kroner.
GN shares have risen more than 11-fold since hitting 8.77 kroner on Nov. 20, 2008.
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