Mexichem Rallies in Mexico City Trading as GBM Says Buy Shares
Mexichem SAB, the chemical maker that has made at least 15 acquisitions in five years, rose the most since July after Corporativo GBM SAB raised its rating on the stock to the equivalent of buy.
Shares gained 4.9 percent to 62.76 pesos at the close in Mexico City. Trading volume was more than triple the three-month average.
Investors overreacted to the company’s fourth-quarter loss, according to Fernando Perez Lizardi, an analyst at Corporativo GBM in Mexico City. The firm raised its rating from the equivalent of hold yesterday while reducing the target price to 71.54 pesos.
“The company in the long term has strong fundamentals and an acquisition strategy that should be able to return value to the stockholders,” Perez Lizardi said in a telephone interview.
Mexichem’s stock has fallen 13 percent this year. The Tlalnepantla-based company posted a fourth-quarter loss of 79.3 million pesos last week.
To contact the reporter on this story: Danielle Verbrigghe in New York at dverbrigghe@bloomberg.net
To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net
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