Printer Friendly

-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 http://www.m2.com

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)

((Comments on this story may be sent to info@m2.com))

COPYRIGHT 2011 Normans Media Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2011 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:M2 EquityBites (EQB)
Date:Jun 29, 2011
Words:256
Previous Article:-Mizuho Bank shelf wins "high creditworthiness" preliminary ratings from R&I.
Next Article:-Sogaz gets higher rating from S&P.
Topics:

Terms of use | Privacy policy | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters