Emperia Jumps as Erste Upgrades Stock on Earnings: Warsaw Mover

Emperia Holding SA, a Polish consumer-goods distributor, soared the most in 10 weeks after Erste Group Bank AG recommended buying its shares.

The shares surged 6.6 percent at 57.83 zloty at 12:55 p.m. in Warsaw, posting the biggest gain since March 8 and valuing the Lublin, Poland-based company at 874 million zloty ($270 million). Turnover stood at 306 percent of the three-month daily average volume, data compiled by Bloomberg show.

“We expect Emperia to show organic improvement coming from higher gross margin” thanks to its “own logistics and new trade agreements with producers,” Marek Czachor, an analyst at Erste in Warsaw, said in a note today.

Erste raised its recommendation to buy from hold and increased its share-price estimate to 66 zloty from 55 zloty.

“We like the company’s sound balance sheet” with 275 million zloty of net cash position, or one-third of its market value and “healthy operating cash flows,” Czachor said.

Emperia shares have declined 0.3 percent in 2013, compared with an 8.1 percent drop in Warsaw’s WIG20 Index of the country’s biggest and most liquid stocks.

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