Avianca Holdings SA, Colombia’s biggest airline, gained the most in three months after Grupo BTG Pactual named the stock as one if its top picks in the transportation industry.
The shares gained 4.5 percent to 4,175 pesos at 2:52 p.m. in Bogota, the biggest increase since Oct. 1 on a closing basis. The company’s American depositary receipts, which started trading in November, reached a record high of $17.40 in New York.
Avianca “remains one of our favorite transportation stocks, thanks to its strong earnings momentum, long-term growth, profitability upside, and attractive valuation,” analysts led by Renato Mimica wrote in a note to clients dated yesterday. Avianca is expected to provide “upbeat guidance” for the year soon, which may be a positive driver for the shares, according to the report.
The shares have jumped 13 percent this year in Bogota, the most on Colombia’s benchmark Colcap index. They fell 18 percent last year after surging 38 percent in 2012.
To contact the reporter on this story: Christine Jenkins in Bogota at email@example.com