The shares of Kloevern AB had jumped its highest in nearly five months in Stockholm trading. This comes after Swedbank AB upgraded its status as a real estate company strong buy from buy saying that there is great potential for mergers and acquisitions in the industry.
The share values advanced by 4.6% to SEK27.3 per share. This was the steepest intraday gains since April 25 this year. Kloevern increased 4.2% to SEK27.2 while at the OMZ All-Share Index climed 1%. The total volume traded reached a volume of four times the daily average in the past three years.
According to Niclas Hoglund, a Swedbank analyst located in Stockholm, wrote to clients that consolidation in the Swedish real estate industry would be able to support income from profits from property development and income from property management.
Hoglund wrote to their clients, "Strong cash flow bodes well for acquisitions in general." In his advisory, the share price pegged for the Kloevern's shares was at SEK32 per share. Overall, the ten analysts who cover Stockholm-based Kloevern who share their ratings with Bloomberg saw four of them urged their clients to buy the shares while two advised to hold while the rest recommend sell.
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