Bloomberg News

Barlinek Slumps as Zachodni Says Rally Unjustified: Warsaw Mover

June 10, 2013

Barlinek SA, Poland’s largest maker of wooden floors, slumped the most in four weeks after Bank Zachodni WBK SA recommended selling its stock, saying its recent rally was “unjustified.”

The shares fell as much as 6.5 percent and traded 5.7 percent lower at 1.16 zloty as of 1:43 p.m. in Warsaw, posting the steepest drop since May 13 and valuing Barlinek at 300 million zloty ($93 million). The company, controlled by Polish billionaire Michal Solowow, has surged 31 percent this year, while Warsaw’s benchmark WIG20 Index lost 3 percent.

“Although we still support our view of significant results upswing this year, we see the company’s current valuation as unjustified,” Maciej Marcinowski, an analyst at Zachodni in Warsaw, said in a note on June 7.

Zachodni kept its price estimate at 1 zloty per share.

To contact the reporter on this story: Piotr Bujnicki in Warsaw at pbujnicki@bloomberg.net

To contact the editor responsible for this story: Wojciech Moskwa at wmoskwa@bloomberg.net


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