DFDS Gains as Nordea Sees U.K. Economy Aiding: Copenhagen MoverChristian Wienberg
DFDS A/S jumped in Copenhagen trading as Nordea Bank AB said the Nordic region’s largest ferry operator will benefit from a stronger U.K. economy and less competition on its English Channel route.
DFDS rose as much as 3.7 percent to 395 kroner, its highest since Aug. 23. The stock also traded at that price at 10:14 a.m. in the Danish capital, with volume at 18 percent of the three-month daily average.
DFDS, based in Copenhagen, operates 55 vessels and generates more than half its revenue from passenger and cargo freight related to the British Isles. The U.K. economy grew at the fastest pace in more than three years in the quarter through August, according to an estimate published Sept. 6 by the National Institute of Economic and Social Research.
“The economy of Great Britain is showing signs of improvement and that will pave the way for significant progress in DFDS’s profits in the coming years,” Nordea Private Banking said today in a note.
The U.K. appeals court will probably next month uphold a competition commission ruling that Channel Tunnel operator Groupe Eurotunnel SA should stop ferry operations at the port of Dover, according to Nordea.
“This will ease competition on one of DFDS’s most important ferry routes, which we expect will result in a positive share price reaction,” the bank said in the note, which was published out of Copenhagen.
DFDS stock will also get a liquidity boost after A.P. Moeller-Maersk A/S sold its 31.3 percent stake for 1.64 billion kroner ($290 million) last week, Nordea said.