Getinge Climbs as Swedbank Raises Price Target: Stockholm Mover
Getinge AB rose the most in a week as Swedbank AB (SWEDA) advised investors to buy the stock and raised its 12-month price estimate.
The shares advanced as much as 2 percent, the biggest intraday gain since April 3, and were up 3.9 kronor to 201 kronor as of 11:06 a.m. local time, valuing the company at 47.9 billion kronor ($7.51 billion).
Getinge has outperformed both its peers and the OMX Stockholm 30 Index, Johan Unnerus, an analyst at Swedank, said in a note to clients today. Unnerus raised Getinge’s price target to 225 kronor per share from 210 kronor, while maintaining his buy recommendation.
“Getinge’s mix of strong market positions, a large proportion of recurring sales, and a large proportion of emerging-market sales support the ability to succeed with savings and restructuring,” he said in the note.
Getinge postponed its goal of reaching an margin on earnings before interest, taxes and amortization of about 22 percent to 2015, due to lower demand, a more challenging currency situation and higher costs related to a U.S. medical device tax, according to a statement on Feb. 8. Getinge, based in the Swedish town of the same name, is in the process of concentrating manufacturing to fewer plants and moving production to low-cost countries.
To contact the reporter on this story: Toby Alder in Stockholm at email@example.com
To contact the editor responsible for this story: James Ludden at firstname.lastname@example.org