May 26 (Bloomberg) -- Candente Resource Corp., a Canadian metals exploration company, surged as analysts said the company is likely to boost estimates of copper deposits in Peru.

Candente rose the most in 10 months in Toronto trading, gaining 11 percent to CN$1.91. The Peru-traded shares climbed 12 percent to $1.90.

``People are getting excited about a resource update,'' said analyst Stephen Parsons at Wellington West Capital Markets in a phone interview.

He rated Candente a ``buy'' in new coverage May 22. The price of shares may rise to CN$3 in a year, Parsons wrote.

Candente has said it will release an update on the estimated size of copper deposits based on results from drilling at a Peruvian project in the second quarter, said John DeCooman, vice president of finance, in a phone interview. The new analyst coverage may be boosting shares, he said.

Candente is ``one of the most deeply discounted copper deposits in South America'' and may be a target for a takeover, Blackmont Capital Inc. analyst George Topping wrote in a research report May 23.

``It's just so tremendously undervalued, and the market just overlooked it, at least before today,'' he said in a phone interview.

To contact the reporter on this story: William Freebairn in Mexico City at wfreebairn@bloomberg.net.

Last Updated: May 26, 2008 16:18 EDT