Bloomberg News

GN Advances as Bernstein Sees Market Share Win: Copenhagen Mover

June 14, 2013

GN Store Nord A/S (GN) rose in Copenhagen trading after Sanford C. Bernstein & Co. said the Nordic region’s second-largest hearing-aid maker will win market share.

GN rose as much as 3.9 percent, the second-highest intraday jump the past month. The stock gained 3 percent to 107.10 kroner at 10:35 a.m. local time, with trading volume at 22 percent of the three-month daily average.

GN, which last month reported earnings that beat analyst estimates, is “well positioned” to grow faster than the hearing-aid market this year and next because of a good distribution set-up, Bernstein said today in a note to clients. The bank increased its recommendation on the share to outperform from market perform and raised a price estimate to 125 kroner from 112 kroner.

“The stock now appears attractively valued as we expect 2014 to be another strong year,” Bernstein analysts, including Lisa Bedell Clive, said in the note.

GN’s share will also benefit from growth in the Ballerup, Denmark-based company’s Netcom unit, which makes headsets, Bernstein said.

“We have become increasingly confident that the competitive advantages held by GN Netcom are sustainable over the long-term,” the analysts said. “We also see Netcom’s entry into integrated music and voice products as under-appreciated.”

GN on May 3 reported first-quarter net income of 131 million kroner ($23 million), exceeding the average estimate of 128 million kroner in a Bloomberg survey of analysts. Sales of 1.63 billion kroner in the quarter beat the average estimate of 1.58 billion kroner.

To contact the reporter on this story: Christian Wienberg in Copenhagen at cwienberg@bloomberg.net

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net


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