Brokers update stance on Topdanmark after Q2 2010 figures

26 August 2010 - Danske Equities, ABG Sundal Collier and Nordea have upgraded their ratings on Topdanmark A/S (CPH: TOP) and JP Morgan has raised its share price target after the Danish insurer yesterday posted its financial results for the second quarter of 2010.

Danske Equities and ABG have hiked their recommendation on the stock to "buy" from "accumulate" and "sell", respectively. Danske Equities has maintained its DKK800 price target.

Nordea has upgraded its rating to "hold" from "sell", raising the price target to DKK700 from DKK680.

At the same time, JP Morgan has lifted its price target on Topdanmark to DKK800 from DKK769, keeping its "neutral" recommendation.

The market is generally positive towards the Danish insurer, which in a recent analyst poll by SME Direkt got seven "buy", four "sell" and three "hold" ratings.

Topdanmark saw its net profit shrink to DKK94m in the second quarter of 2010 from a year-earlier DKK555m, undershooting the DKK199m market consensus. As a result, the group cut its full-year net profit guidance to DKK800m-DKK900m from DKK950m-DKK1.05bn.

The stock in Topdanmark had gained 3.66% to DKK666 by 12:59 CET today on the OMX Nordic Exchange in Copenhagen.

(EUR1 = DKK7.4)

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