Micronic Mydata Jumps as Handelsbanken Says Buy: Stockholm MoverAdam Ewing
Micronic Mydata AB, a Swedish computer technology company, rose to its highest level in over four months after Svenska Handelsbanken AB recommended investors buy shares.
Shares climbed as much as 0.7 krona, or 5.8 percent, to 11.9 kronor, the Stockholm-based company’s biggest intraday gain and highest level since Sept. 11. The stock was trading at the high as of 11:32 a.m. local time, with volume representing 117 percent of the daily three-month average. Micronic slipped 14 percent last year.
“Things have improved structurally for the company and the risks have been lowered,” Martin Nilsson and Fredrik Lithell, analysts at Handelsbanken, wrote in a note to clients today. The stock was upgraded to a buy recommendation from accumulate, while the 12- month target price was lifted to 15 kronor a share from 13 kronor.
Micronic delivering a Prexision 8 laser pattern generator in the fourth quarter may help lift its earnings before interest and taxes as a percent of sales to around 20 percent, the analysts wrote. The company is scheduled to report fourth-quarter earnings on Feb. 1.