Feb. 15 (Bloomberg) -- TomTom NV, Europe’s biggest maker of portable navigation devices, rose to an eight-month high in Amsterdam trading after the company said it plans to introduce the HD Traffic service to China.
TomTom jumped as much as 19 percent to 4.65 euros, the highest intraday price since June 27, and was trading up 8.7 percent at 12:54 p.m. The stock has gained 39 percent this year.
TomTom and local partner AutoNavi Holdings Ltd. will jointly introduce HD Traffic, a navigation product that provides information on traffic jams and offers alternative routes, to drivers in 30 cities in China by the end of 2013, the Amsterdam- based company said in a statement today.
“This isn’t necessarily a big deal, but the fact that they are getting some footprint in China is a positive surprise to the market,” said Jos Versteeg, an Amsterdam-based analyst at Theodoor Gilissen Bankiers with a “hold” recommendation on TomTom.
Chief Executive Officer Harold Goddijn is trying to increase TomTom’s sales of built-in navigation systems for cars as well as electronic maps and other software, as demand for portable navigation devices is falling.
The company has announced deals in the past four months with Samsung Electronics Co. for maps and location content and with Ford Motor Co. and General Motors Co.’s Opel division to supply built-in navigation systems. Rabo Securities raised TomTom’s recommendation to “buy” from “hold” on Feb. 10, citing strong automotive sales and a potential Apple Inc. mapping deal.
--Editors: Tom Lavell, Robert Valpuesta
To contact the reporter on this story: Maaike Noordhuis in Amsterdam at email@example.com
To contact the editor responsible for this story: Kenneth Wong at firstname.lastname@example.org