Nordea Bet Drives Local Bank to Six-Year High: Copenhagen MoverChristian Wienberg
Ringkjoebing Landbobank A/S, a Danish regional lender that has reported profits in the past 18 quarters, rose to a six-year high in Copenhagen after Nordea Markets and Danske Markets raised price estimates on the share.
Ringkjoebing Landbobank added as much as 1.3 percent to 1,024 kroner and also traded at that price at 10:48 a.m. local time, the highest since Aug. 13, 2007. Trading volume was 57 percent of the three-month daily average.
The bank, based in the Danish city of the same name, yesterday reported rising net income, falling loan impairments and said it’s about one-fourth of the way into its share buy-back program. Nordea today raised its recommendation on the share to buy from hold and lifted its price estimate by 13 percent to 1,150 kroner, according to a note to clients. Danske increased its price target by 6.8 percent to 1,100 kroner.
“We continue to find Ringkjoebing Landbobank an attractive pick in the sector,” Danske said in a note today. Danske repeated a buy recommendation on the share and said it raised its price target due to a “recent sector revaluation and not least due to the expected support from the 95,000 shares to be bought back in the rest of 2013.”
Ringkjoebing Landbobank yesterday reported a second-quarter net income of 92 million kroner ($16 million), a 28 percent improvement from a year earlier. Loan impairments shrank 27 percent to 40 million kroner. The bank also said it has set aside 35,000 shares for cancellation as part of a buy-back plan that targets 130,000 shares.