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D/S Norden A/S (DNORD), Europe’s biggest commodity shipping company, dropped to the lowest price in two months in Copenhagen after Nordea Equity Research and Nykredit Markets reduced share estimates citing a lower fleet value.
Norden declined as much as 1.9 percent to 146.60 kroner, the lowest since Sept. 12. The stock of the Hellerup, Denmark- based company retreated 1.3 percent to 147.5 kroner at 10:22 a.m. in the Danish capital, with trading volume at 44 percent of the three-month daily average.
Norden, which is battling overcapacity and falling freight rates, yesterday reported operating profit that missed analyst estimates and said the value of its bulk carriers and tankers declined by 6 percent during the third quarter. Nykredit today repeated an underperform recommendation on the share and said Norden’s net asset value is declining at a “surprising” rate.
“The earnings report shows the significant market challenges under which the company operates, both in the dry bulk and in the tanker segment,” Ricky S. Rasmussen, an analyst with Nykredit in Copenhagen, said in the note. He cut his price estimate to 123 kroner from 128 kroner.
Finn Bjarke Petersen, an analyst with Nordea in Copenhagen, today cut his share price estimate to 165 kroner from 195 kroner, repeating a buy recommendation, “albeit with significant reduced upside.”
Norden’s earnings before interest, tax, depreciation and amortization fell to $23 million in the third quarter, missing the average estimate of $27.7 million in a Bloomberg survey of 12 analysts. The shipping company said its theoretical net asset value, a measure based on vessel prices and time charter rates, decreased by 13 percent to 198 kroner a share in the third quarter.
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