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-Jyske Bank lifts to "accumulate" rating on Bang & Olufsen.

M2 EQUITYBITES-June 29, 2011--Jyske Bank lifts to "accumulate" rating on Bang & Olufsen(C)2011 M2 COMMUNICATIONS

29 June 2011 - Jyske Bank has lifted its recommendation on Danish high-end audiovisual equipment maker Bang & Olufsen A/S (CPH: BO) to "accumulate" from "reduce" as it says the company is an obvious acquisition target.

Jyske Bank is confident that Bang & Olufsen will make good moves in relation to its new strategy plan due to be presented in August, analyst Rune Moller said. The company has a focus on the most important things -- the distribution network and the revenue of its core business, according to Moller.

He pointed, though, that a negative development of revenue was expected in the fourth quarter due to a lack of strong product introductions. On the other hand, Bang & Olufsen will soon launch a flat screen series, which will fill the gap in the product portfolio.

However, there is a high risk in investing in the company because it has not managed to achieve a stable development, Rune Moller claimed. Jyske Bank still sees Bang & Olufsen as an acquisition target with a premium for investors. The company's brand is far more worthy than the current market value of DKK2.4bn, Jyske Bank said.

The bank's price target stands at DKK72.

By 10:19 CET on Wednesday, the stock in Bang & Olufsen had gone up 1.63% to DKK62.50 on the Nasdaq OMX Nordic Exchange in Copenhagen.

(EUR1 = DKK7.5)

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Publication:M2 EquityBites (EQB)
Date:Jun 29, 2011
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