B&O Shares Drop as Nordea Says Don’t Buy Yet: Copenhagen MoverGelu Sulugiuc
Bang & Olufsen A/S fell for a second day in Copenhagen after Nordea Bank AB said shares in the luxury stereo and television maker could decline further, adding to yesterday’s losses from a cut forecast.
B&O declined 3.1 percent after falling 9.8 percent yesterday. Shares in the Struer, Denmark-based company were down at 63.50 kroner at 12:47 p.m. in the Danish capital, with trading volume at 223 percent of the three-month daily average. The benchmark OMX Copenhagen C20 Index rose 0.1 percent.
B&O will spend as much as 100 million kroner ($18 million) to close under-performing stores amid declining sales, and cut its full-year outlook yesterday after reporting second-quarter net income lower than estimated. Revenue for the fiscal year ending May 31, 2013, will exceed last year’s, the company said. It earlier forecast double-digit growth.
The report was “a major disappointment,” Nordea analyst Michael Borre said in a note today. “As long as there is no growth in the audio-video unit, it’s hard to see why investors would be willing to send the share price higher.”
The bank cut its 12-month price target to 65 kroner from 80 kroner and kept its hold rating on the share.