FLSmidth Gains as Danske Says Share Underrated: Copenhagen MoverChristian Wienberg
FLSmidth & Co. A/S, the Danish maker of mining equipment, rose the most among Copenhagen’s benchmark stocks after Danske Bank A/S raised its recommendation, saying the share is too cheap given its potential.
FLSmidth rose as much as 1.5 percent to become the biggest winner in the Nasdaq OMX Copenhagen 20 index, which fell 0.2 percent. The stock rose 1.2 percent to 355.10 kroner at 11:03 a.m. in the Danish capital, with trading volume at 39 percent of the three-month daily average.
FLSmidth, which in November reported earnings that missed analyst estimates, had lost 4.3 percent of its stock market value in the six months through yesterday, compared with an 11 percent gain in the C20 index. Danske today raised its rating on the stock to hold from sell saying the Copenhagen-based company is set to benefit as the global economy recovers.
“We have seen a clear stabilization in China’s real estate and investment levels -- a clear driver of the material recovery in iron ore prices, a significant cash cow for the large mining companies,” Kenneth Leiling, an analyst at Danske, said in the note. He raised his 12-month price estimate on the share to 355 kroner from 295 kroner.