The shares increased 0.4 percent to 8,600 pesos at 2:07 p.m. in Santiago after climbing on Nov. 5 to 8,806.50 pesos, the highest level since June 7. The benchmark IPSA stock index declined 0.3 percent today.
Banchile-Citi, the joint research department of Citigroup Inc. and Banco de Chile (CHILE), increased its price target for Latam to $20 per American depositary receipt from $16 and reiterated a buy rating on expectations that cash from a planned equity offering this quarter will help reduce financial costs and boost profits next year.
“Most of the bad earnings news is behind us,” the Banchile-Citi analysts, Stephen Trent, Fernan Gonzalez and Juliano Navarro, wrote in an e-mailed research note.
They increased their profit forecast for Latam next year to $0.98 per ADR from $0.96, according to the note. Latam approved in June plans to sell about $1 billion in shares. Ignacio Cueto, the chief executive officer of unit Lan Airlines SA and a member of the controlling family, said last month that the company plans to complete the share sale this year.
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