FLSmidth Falls as Target Cut to Four-Year Low: Copenhagen Mover

FLSmidth & Co. A/S fell for a second day in Copenhagen after analysts targeted the lowest share price in four years citing a risk Europe’s biggest maker of cement production lines will need to cut its profit goal.

FLSmidth fell as much as 1.5 percent, and declined 1 percent to 298.90 kroner at 9:35 a.m. in the Danish capital, heading for its lowest closing price since June 14, 2012. Trading volume was 30 percent of the three-month daily average.

FLSmidth’s stock lost 9.7 percent on May 17 when the Copenhagen-based company reported profit that missed analyst estimates and said 2013 sales and earnings may end in the low end of its forecast range. Analysts covering the stock have since lowered their price estimates on the share to an average of 383 kroner, the lowest since February 2009, according to data compiled by Bloomberg.

“We cannot rule out a profit warning later this year,” Patrik Setterberg, an analyst at Copenhagen-based Nordea Bank AB, said today in a note to clients. He lowered his recommendation to hold from buy and cut his share price estimate to 330 kroner from 415 kroner. Until FLSmidth presents a strategy review in its second-quarter report, “a great degree of uncertainty will be associated with the share,” Setterberg said.

FLSmidth reported a first-quarter net income of 37 million kroner ($6.4 million) last week, missing the average analyst estimate of 231 million kroner. “Market uncertainty and customer hesitation have increased in recent months,” the company said.