Kone Oyj (KNEBV), the Finnish elevator company that supplied the world’s tallest clock tower in Mecca, rose the most in three weeks as SEB Bank AB predicted growth in China.
Kone advanced 2 percent, the biggest intraday gain since March 5, to 60.25 euros at 12:56 p.m in Helsinki. Trading volume exceeded 175,000 shares, about 43 percent of the three-month daily average.
“We expect the Chinese elevator market to continue to grow this year, supported by Kone’s view and recent Chinese statistics,” Tomi Railo, an analyst at SEB, said in a note today. He raised his rating on the share to buy from hold, increasing the 12-month price estimate to 67 euros from 59 euros. “Recent share price weakness offers a good entry point for Kone.”
Kone fell 8.8 percent from its record peak of 64.75 euros from Feb. 14 to yesterday. The company has quadrupled its market value during the past four years, fueled by China’s construction boom. Chinese manufacturing is expanding faster than forecast, suggesting sustained recovery, according to a preliminary reading of an index from HSBC Holdings Plc and Markit Economics published last week.
The Helsinki-based company got 35 percent of its sales from the Asia-Pacific region last year, according to data compiled by Bloomberg.
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