Coloplast Drops as Nordea Sees Looming Threats: Copenhagen Mover
Coloplast A/S (COLOB) fell the most in three weeks in Copenhagen trading after Nordea Bank AB said government cost cutting and signs of weakening profitability may erode gains by the world’s largest ostomy products maker.
Coloplast fell as much as 2.8 percent, the steepest drop since June 24. The shares declined 9.1 kroner, or 2.6 percent, to 337.90 kroner at 2:59 p.m. in the Danish capital. Trading volume was 55 percent of the three-month daily average.
Coloplast hit a record high yesterday after climbing 13 percent since April when the Humlebaek, Denmark-based said six-month earnings before interest and tax jumped 20 percent and that it would pay an extraordinary dividend. Coloplast faces several challenges that may eat away at those gains, Jesper Bamberger, an analyst at Nordea, said today.
“It won’t take much to send the share down,” Bamberger said in a note to investors. Threats include pressure in the U.S. and France to reduce health care spending, weaker market conditions in southern Europe and signs of weakening profitability, he said.
To contact the reporter on this story: Frances Schwartzkopff in Copenhagen at firstname.lastname@example.org