Besalco SA (BESALCO), Chile’s second-largest publicly traded engineering and construction company, rose the most in three weeks after two local brokerage firms reiterated “buy” recommendations and said profit beat their forecasts.
Besalco rose 3.1 percent to 773 pesos at the close in Santiago, the biggest increase since Oct. 13.
The company reported Oct. 28 net income in the third quarter of 5.5 billion pesos ($11.1 million), a 44 percent increase from a year earlier. Revenue rose 31 percent to 86 billion pesos.
“The results were above our expectation and confirm the strong scenario for Chile’s construction sector,” Santiago- based brokerage firm Celfin Capital SA Corredores de Bolsa said in an e-mailed note to clients today in which the “buy” recommendation was reiterated.
Jorge Opaso, an analyst at Larrain Vial SA Corredora de Bolsa, also repeated his “buy” recommendation in a note dated yesterday.
“The company reported its strongest quarter of the year and we expect this dynamism to continue,” Opaso said.
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