Rockwool Rises as HSBC Sees 13% Share Upside: Copenhagen Mover
Rockwool International A/S (ROCKB), the world’s largest maker of stonewool insulation, rose to a seven-week high in Copenhagen trading after HSBC Holdings Plc recommended investors boost holdings of the stock.
Rockwool rose as much as 0.8 percent to 819 kroner, the highest since May 15. The advance beat a 1.1 percent decline in the Copenhagen all-share index. Rockwool traded at 813.50 kroner at 10:26 a.m. in the Danish capital with trading volume at 70 percent of the three-month daily average.
Rockwool, based in Hedehusene, Denmark, will improve sales as stricter regulation will force builders to use more insulation to reduce energy consumption, HSBC said. The bank started coverage of the share today with an overweight recommendation and a price estimate of 920 kroner, indicating a 13 percent upside from yesterday’s close.
“Capacity to invest in growth, benefits of regulation, high renovation exposure and a favorable energy cost outlook support our positive view, despite high European exposure,” HSBC said in the note.
Rockwool is due to publish second-quarter earnings on Aug. 27. The company may report net income of 214 million kroner ($37 million), according to the average estimate in a Bloomberg survey of six analysts. That compares with a second-quarter profit of 179 million kroner in 2012.
To contact the reporter on this story: Christian Wienberg in Copenhagen at firstname.lastname@example.org
To contact the editor responsible for this story: Tasneem Brogger at email@example.com