Demant Advances After Nordea Upgrades to Buy: Copenhagen MoverAllison Connolly
William Demant Holding A/S rose the most in four months after Nordea said the Danish hearing-aid maker will probably deliver “significant earnings improvements” in the second half and advised buying the shares.
Demant gained as much as 2.9 percent, the most since May 7, snapping a three-day decline. The shares were up 2.4 percent to 490.50 kroner at 9:40 a.m. in Copenhagen, giving the company a market value of 27.8 billion kroner ($4.9 billion).
Demant’s multiple brand strategy and presence in Costco Wholesale Corp., the largest U.S. warehouse-club chain, as well as opticians shops means “it’s not dependent on single, large retail chains,” Soren V. Holm Sorensen, an analyst with Nordea, wrote in a note to investors today. Nordea raised its recommendation on the stock to buy from hold and increased its share price estimate to 560 kroner from 500 kroner.
“Acquisitions have been a major growth driver in the hearing-aid industry in recent years,” he said. “Sonova and William Demant have been able to gain significant market share through acquisitions.”
Sonova Holding AG rose 1.7 percent to 113.80 Swiss francs as of 9:50 a.m. in Zurich. Sonova is the world’s largest hearing-aid maker with a market value of 7.64 billion francs ($8.18 billion).