Kernel Jumps as Wood Recommends Stock on Valuation: Warsaw Mover
Kernel Holding SA (KER), Ukraine’s biggest sunflower-oil producer, jumped the most in two months in Warsaw trading as Wood & Co. recommended buying its stock after a recent slump made it “attractively priced.”
The shares advanced as much as 4 percent and traded 3.2 percent higher to 57.3 zloty at 12:25 p.m. in Warsaw, the biggest gain since Jan. 23. Wood upgraded the stock to buy from hold with a price estimate at 66.7 zloty.
Kernel has slumped 14 percent this year after the Kiev- based company cut its 2013 profit forecast and fiscal second- quarter earnings missed analysts’ estimates.
“Against the stock’s undemanding valuation, on what we perceive as trough earnings and Kernel’s potential to halt its margin erosion next season, we consider Kernel’s current price as a buying opportunity,” Piotr Drozd, an analyst at Wood in Warsaw, said in a research note today.
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