Braskem Rises Most on Bovespa as Credit Suisse Says Stock a Buy
Braskem SA, Latin America’s largest petrochemicals producer, rose the most on the Bovespa after Credit Suisse Group AG raised its recommendation to the equivalent of buy.
Shares gained 6.3 percent to 14.78 reais at 3:29 p.m. in Sao Paulo after surging as much as 8.3 percent, the biggest intraday advance since Aug. 3. It was the best performer on the benchmark Bovespa index, which dropped 0.3 percent.
Fourth-quarter earnings and asset sales announced in the past few months led Credit Suisse’s Emerson Leite to raise Braskem to outperform, which means its shares are expected to beat the overall market in the next 12 months.
Braskem has “lower risk to consensus downgrades, reasonable valuation and momentum ahead of itself,” Credit Suisse’s analysts wrote in a note to clients published yesterday.
Shares trade at 23.2 times its 2013 forecast earnings, compared with 11.2 for companies on the Bovespa index, according to data compiled by Bloomberg.
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