Uponor Advances as Danske Sees Risks Subsiding: Helsinki Mover
Uponor Oyj (UNR1V), the Finnish maker of plumbing systems, advanced the most in more than a month in Helsinki trading after Danske Bank A/S (DANSKE) said risks to its business, such as raw material price instability, are easing.
Uponor shares rose as much as 2.5 percent, the most since May 10, and were up 2 percent to 11.24 euros at 12:59 p.m. in the Finnish capital. Volume was 25 percent of the three-month daily average.
Uponor’s ability to set the prices of its products is helping the company weather the euro-area recession as the cost of materials remains stable, the Copenhagen-based lender said in a note to clients. Danske maintained a buy recommendation and predicts the shares will rise to 13 euros.
“Raw material price stability lowers European margin risks as we believe Uponor’s pricing power in plastic pipes is good,” Danske said. “We expect high margin growth to continue in North America and as volume risks in Building Solutions Europe gradually moderate.”
The joint venture Uponor set up with KWH Group on infrastructure solutions “should clearly improve 2014-15 earnings prospects,” the bank said.
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