Bloomberg News

Waertsilae Declines as HSBC Cuts Recommendation: Helsinki Mover

March 02, 2012

Waertsilae Oyj (WRT1V), the world’s largest maker of ship motors, was today’s biggest decliner in the OMX Helsinki 25 Index (HEX25) as the top-ranked analyst tracking the stock lowered his recommendation after recent gains.

Waertsilae fell as much as 2.7 percent, the biggest decline since Feb 28. The shares of the Helsinki-based company dropped 41 cents, or 1.6 percent, to 25.10 euros at closing time in the Finnish capital.

Waertsilae has jumped 37 percent in the last six months, making the stock the fifth-best performer in the Helsinki 25 Index, as stricter emission and ballast water requirements spark demand for its dual-fuel engines and environmental solutions.

HSBC Holdings Plc’s Colin Gibson cut his recommendation today to “neutral” from “overweight.” His advice on the stock has returned clients 41 percent over the last 12 months, more than any of the other 16 analysts covering Waertsilae, according to data compiled by Bloomberg.

“I don’t think we’ve changed our fundamental view on the stock so much as it has simply been a fantastic performer,” Gibson said in a phone interview today. Gibson said he plans to keep the stock off his overweight list at least until the company provides its new strategy at a capital markets day later this month.

Waertsilae last year canceled its Nov. 21 investor meeting and moved it to March 29 this year, citing strategic considerations. It will be the first time Chief Executive Officer Bjoern Rosengren, who started Sept. 1, addresses investors at a capital markets day.

“I would at least expect some clarity on the company’s focal points, maybe some expansion in the product portfolio and strengthening of maintenance,” Pekka Spolander, an analyst at Pohjola Bank Oyj, said today by phone. Expectations “are naturally higher” after the company postponed the date, he said.

To contact the reporter on this story: Kasper Viita in Helsinki at kviita1@bloomberg.net

To contact the editor responsible for this story: Christian Wienberg at cwienberg@bloomberg.net


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