Enersis SA (ENERSIS) was rated a buy at Bice Inversiones, which said the Latin American power holding company stands to gain from a transfer of assets from its controller and as its operating units fire up new power plants.
Bice set a price target of 210 pesos by the end of 2013, according to an e-mailed research note to clients. That would be 19 percent higher than Enersis’s March 15 closing level of 176.34 pesos. The stock fell less than 0.1 percent today to 176.24 pesos at 1:29 p.m. in Santiago.
Enersis will receive from its controller, Spain’s Endesa SA, assets in Latin America that Bice valued at $4.9 billion, including stakes in companies in countries including Colombia, Brazil, Peru and Chile.
“We see this transaction as an attractive entry point,” Bice analysts Diego Eguiguren and Rodrigo Jacob wrote in the note.
Enersis will probably increase earnings margins this year as its Chilean power generation unit, Endesa-Chile, benefits from more rain in Chile and as it starts operation of its Bocamina II coal plant, according to Bice.
Endesa-Chile was rated a hold at Bice, with a year-end price target of 872 pesos, according to a separate note today. Its shares gained 0.5 percent to 785 pesos.
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