Rockwool International A/S (ROCKB), the world’s largest maker of stonewool insulation, fell the most in a year in Copenhagen trading on concern a slumping European construction market will hurt 2013 profits.
Rockwool fell as much as 6.6 percent, the most since March 6, 2012. The stock declined 4.8 percent to 675.50 kroner at 1:25 p.m. in the Danish capital, with trading volume at 322 percent of the three-month daily average.
Rockwool, based in Hedehusene, Denmark, said March 1 that 2013 net income will drop to about 700 million kroner ($122 million), missing the average estimate of 861 million kroner in a Bloomberg survey of analysts. Today, Danske Bank A/S repeated a sell recommendation on the stock, citing the 2013 forecast.
“The weak 2013 guidance is a reflection of the tough European outlook,” Danske, which previously had warned the earnings report may disappoint the stock market, said in a note to clients. “Given the high valuation, we believe better opportunities are found elsewhere.”
Nordea Bank AB today repeated a hold rating on the stock, saying investors should “wait for a setback” in the price before buying.
“Rockwool’s structural growth element is fully reflected at current valuation,” Nordea said in a note to clients. Rockwool’s 2013 forecast is “conservative,” the bank said.
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