Stockmann Drops Most in Month on Sell Rating: Helsinki Mover
Stockmann Oyj (STCBV) fell the most in a month in Helsinki trading after Nordea Bank AB recommended selling the shares because weak sales may lead to “disappointing” first-quarter earnings.
The Finnish department-store owner’s shares fell as much as 2.9 percent to 13.60 euros, the most since Feb. 14, as of 11:47 a.m. in the Finnish capital. The trading volume was about half of the three-month daily average.
“We believe first-quarter sales will be down 3 percent in the quarter,” Rauli Juva, an analyst at Nordea in Helsinki, said in a note. “We expect another disappointment” in earnings with “a lower share price and estimates ahead of the report.”
“Worryingly, growth in Russian department stores, Stockmann’s best growth driver, also stalled in February,” Juva said.
Nordea recommended clients sell the stock instead of holding it. The bank estimated the price will fall to 13 euros in 12 months, compared with a prior estimate of an increase to 15 euros. Stockmann is scheduled to report earnings on April 26.
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