TomTom NV rose to a one-month high in Amsterdam after UBS raised its rating to neutral from sell, saying the personal navigation-device maker’s earnings will become more stable as it expands in content and services.
The shares rose as much as 6.5 percent to 3.56 euros, reaching the highest intraday level since June 26. The stock traded at 3.53 euros as of 10:38 a.m. local time and has risen 15 percent this year, giving the Amsterdam-based company a value of 778 million euros ($955 million).
“An investment in TomTom hinges on the company’s ability to offset the structural decline in PNDs with growth in high- margin content and services,” analyst Anuj Krishan said in a note to clients, adding that that will probably happen in 2014.
Krishan also said TomTom may get more business after the licensing deal with Apple Inc. announced in June. The Cupertino, California-based company agreed to use TomTom’s digital maps in new mobile services.
UBS has a price estimate for the stock at 3.50 euros.
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