Metso Rises as Morgan Stanley Sees 2014 Surprise: Helsinki Mover

Metso Oyj, the Finnish provider of paper machines, rock crushers and engineering services, gained the most in a month in Helsinki trading after Morgan Stanley said the company will surprise the market next year.

Metso advanced as much as 4.6 percent to 33.90 euros, the most since Dec. 11, and gained 3.6 percent at 12:06 p.m. in the Finnish capital. It was the biggest increase on the Nasdaq OMX Helsinki 25 index with Metso’s trading volume at about 80 percent of the three-month average.

Metso’s “margin expansion will surprise the market,” according to Morgan Stanley analyst Markus Almerud. The bank added Metso to its list of best individual investment ideas in Europe, it said in a note to clients today. The Helsinki-based company’s earnings per share may be 15 percent higher than consensus estimate next year, Morgan Stanley said.

Even so, last quarter’s report won’t surprise positively, Danske Bank, which recommends clients buy the shares, said in a note today. The average 12-month price estimate by 23 analysts surveyed by Bloomberg is at 33.63 euros, the highest since Sept. 21, when analysts estimated a price of 33.80 euros.

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