Bloomberg News

GN Rises as SocGen Sees Market Share Profit: Copenhagen Mover

June 27, 2013

GN Store Nord A/S (GN) rose in Copenhagen trading after Societe Generale SA added the stock to its premium list saying the Nordic region’s second-largest hearing-aid maker will win market share and boost profits.

GN advanced as much as 2.7 percent to 109.80 kroner, the highest price since June 4. The stock gained 1.2 percent to 108.20 kroner at 9:41 a.m. local time, with trading volume at 11 percent of the three-month daily average.

GN, which last month reported profit that beat analyst estimates, will deliver “sustainable double-digit” growth in earnings-per-share over the next five years, Societe Generale said today. The bank kept a buy recommendation and a 12-month share price estimate of 146 kroner, indicating a 37 percent upside from yesterday’s closing price.

GN profits will rise “with the major driver being its ReSound hearing aid unit, where we expect share gains from new product launches to be augmented by restructuring,” Justin Smith, a Societe Generale analyst, said in the note.

GN, based in Ballerup, Denmark, 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.

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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