Cargotec Rises as Pohjola Predicts European Business PushKati Pohjanpalo
Cargotec Oyj rose the most in six weeks in Helsinki trading after Pohjola Bank Oyj said a return to economic growth in Europe is likely to benefit the Finnish cargo-handling technology producer.
Cargotec advanced as much as 3.5 percent, the steepest intraday jump since July 22, and was trading up 3.3 percent at 26.44 euros at 4:11 p.m. The increase was the second-biggest on the OMX Helsinki 25 Index. Volume was 78 percent of the average traded daily over the past three months.
“Expectations of a recovery on the European markets have strengthened in recent weeks,” and “a revival in demand would improve the outlook” for Cargotec, which gets 44 percent of revenue from Europe, the Middle East and Africa, Pekka Spolander, an analyst at Pohjola Bank in Helsinki, said in a report to clients. Pohjola raised its recommendation on Cargotec stock to accumulate from hold and kept its 12-month price estimate on the shares unchanged at 30 euros.
The euro area emerged from its longest recession in the second quarter, driven by recoveries in Germany and France. Factory output in the 17-member single-currency union expanded at a faster pace than initially estimated in August, London-based Markit Economics said today, citing an index based on a survey of manufacturing-industry purchasing managers.
“The shares have fallen about 10 percent from the mid-August peak and offer renewed potential for gains,” Pohjola said. “We retain our view of Cargotec as a company undergoing a turnaround.”
Cargotec slid 10 percent from Aug. 14 through Aug. 30. Analysts at Evli Bank Oyj, Kepler Cheuvreux and Nordea Bank AB reduced recommendations on the stock in that period.