TDC Falls as Swedbank Sees Mobile Profit Drop: Copenhagen MoverChristian Wienberg
TDC A/S fell to its lowest price in 15 days in Copenhagen trading after Swedbank AB said Denmark’s biggest phone company will struggle to maintain its profit level in the mobile phone market.
TDC fell as much as 1.3 percent to 44.02 kroner, the lowest since April 23. The stock lost 1.2 percent to 44.06 kroner at 9:44 a.m. in the Danish capital with trading volume at 7 percent of the three-month daily average.
Swedbank said TDC’s shares, which had gained 11 percent in the year through yesterday, now have recovered “to more decent levels” after a slump. The bank lowered its recommendation to neutral from buy. Copenhagen-based TDC, which last month repeated a forecast that 2013 revenue and profit will decline, won’t be able to sustain its profit level in the Danish mobile phone market where it’s the only operator making money currently, Swedbank said.
“We believe Denmark remains the most challenging mobile market in the Nordic region,” Sven Skoeld, an analyst at Stockholm-based Swedbank, said in a note published today. “The dividend yield remains high. This may protect on the downside as long as the current profitability is maintained in Denmark.”