A/S Schouw & Co (SCHO), which owns 4 million shares in Vestas Wind Systems A/S, rose to its highest in 18 months in Copenhagen trading after Nordea Equity Research said it expects bigger dividends and share buy-back programs.
Schouw rose as much as 1.1 percent to 144.5 kroner, the highest since June 1 last year. The stock also traded at that price at 9:49 a.m. in the Danish capital with trading volume at 45 percent of the three-month daily average.
Schouw shares rose 6.3 percent yesterday after the Aarhus, Denmark-based company said it agreed to sell its lighting and smoke machine maker Martin Professional for 110 million euros ($145 million). Nordea today raised its recommendation on the shares to strong buy from buy, saying the divestment price exceeded the bank’s estimates and was “far from” reflected in yesterday’s share gain.
“Net interest bearing debt will come down sharply in 2013, which increases the likelihood of share buybacks on top of dividend payments,” Dan Kirk Wejse, an analyst with Nordea in Copenhagen, said in a note. He raised his price estimate on the stock to 180 kroner from 165 kroner.
Schouw, which also owns a fish feed unit, paid an annual dividend of 4 kroner a share in April, up from 3 kroner a year earlier. The company’s net interest bearing debt was 2.67 billion kroner ($473 million) at the end of September, down from 2.86 billion kroner a year earlier.
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