Electrolux at Week-High as U.S. Shipments Jump: Stockholm MoverVeronica Ek
Electrolux AB, the world’s second-largest maker of home appliances, rose to its highest price in almost a week in Stockholm trading after U.S. shipments of washers and ovens surged last month.
Electrolux, the maker of Frigidaire freezers and AEG vacuum cleaners, advanced as much as 1.2 percent to 179.6 kronor, making it the second-biggest gainer on the OMX Stockholm 30 index. The shares gained 1 percent at 179.2 kronor as of 10:04 a.m. Swedish time, with trading volume at 40 percent of the daily average in the past three months.
U.S. August deliveries of products such as dishwashers, dryers, freezers and ranges rose an annual 15 percent, reaching 3.28 million units, the Association of Home Appliance Manufacturers said yesterday. Electrolux forecast in July that demand in the U.S. could increase by as much as 7 percent this year. North America accounted for 30 percent of the Swedish company’s revenue during the first six months of the year.
“The North American market continues to perform very strongly for Electrolux, however, other geographical areas, especially Europe and now Brazil, suffer from weak demand,” Fredrik Nilhov, an analyst at Swedbank AB in Stockholm, wrote in a note to clients today. Nilhov has a reduce rating on Electrolux shares, whose valuation is “stressed,” he said.
Of the 27 analysts that cover Electrolux and share their ratings with Bloomberg, 48 percent advise clients to buy the shares while 33 percent have hold ratings and 19 percent have sell recommendations.