CMPC Rises in Chile After Deutsche Says Buy on Valuation

Empresas CMPC SA (CMPC), Chile’s second-largest pulp exporter, rose the most in two months after Deutsche Bank AG analysts said the shares may gain 23 percent over the next year as a weaker peso bolsters export revenue.

CMPC gained 2.3 percent to 1,460 pesos as of 1:11 p.m. in Santiago, the biggest gain on a closing basis since May 4. The IPSA benchmark index fell 0.3 percent.

Deutsche Bank said Santiago-based CMPC’s stock is attractive compared with peers after it fell 23 percent from this year’s high of 1,906.96 pesos on Feb. 15. The shares trade at about 17 times estimated 2013 earnings, versus 20 times for Empresas Copec SA (COPEC), Chile’s largest pulp exporter, according to data compiled by Bloomberg.

CMPC “presents considerable long-term upside potential,” Josh Milberg, a Sao Paulo-based analyst for the bank, wrote in an e-mailed note. “It looks more attractive to us than Copec today, taking into account valuation.”

Deutsche Bank has a buy rating on CMPC, with a 12-month target price of 1,800 pesos.

The company stands to benefit from a weaker local currency and higher output as new plants begin operations, Milberg wrote. The bank lowered its estimate for CMPC’s profit this year, saying hardwood pulp prices have peaked.

To contact the reporter on this story: Eduardo Thomson in Santiago at

To contact the editor responsible for this story: David Papadopoulos at

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