Cencosud Climbs Most in 18 Months as Credit Suisse Recommends Retailer

Cencosud SA rose the most in 18 months after Credit Suisse Group AG named the Santiago-based company as its preferred Chilean retailer, initiating coverage with an “outperform” rating on earnings growth prospects.

Chile’s largest retailer by sales rose 5.2 percent to a record 2,694.3 pesos, the biggest advance since January 2009.

The operator of home-improvement outlets, department stores and supermarkets is Credit Suisse’s top pick among Chilean retailers, analysts Antonio Gonzalez, Vanessa Quiroga and Marcel Moraes wrote in a research note. They rated rivals Empresas La Polar SA “outperform” and SACI Falabella and Ripley Corp SA “neutral.”

“Cencosud took the 2009 crisis as a chance to make a pause on its aggressive expansion phase and emerged as a much stronger operator,” they wrote. “We forecast profitability levels above historic standards for the following years.”

La Polar increased 1.3 percent, Ripley gained 1 percent and Falabella climbed 0.9 percent. Chile’s Ipsa index gained 0.2 percent.

To contact the reporter on this story: Eduardo Thomson in Santiago at ethomson1@bloomberg.net.

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.