Argentina's Molinos Falls as Allaria Ledesma Cuts to `Sell' From `Hold'

Molinos Rio de la Plata SA fell to the lowest level in almost two weeks after Allaria Ledesma y Cia. Sociedad de Bolsa SA downgraded the soybean oil exporter on record-high valuations.

Molinos declined 1.3 percent to 15.35 pesos in Buenos Aires trading, the lowest price since April 19.

Molinos trades at 3.3 times book value, the highest ratio among large Argentine stocks and a record level for the company, Christian Reos, head of research at the Buenos Aires-based brokerage, wrote in an e-mailed note dated today, cutting his recommendation to “sell” from “hold.”

“There are companies in the local market with similar profit growth outlooks and return on equity that have valuations below that of Molinos,” Reos wrote.

To contact the reporter on this story: James Attwood in Santiago at jattwood3@bloomberg.net

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