Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Klabin Advances as Bank of America Boosts Rating

Nov. 30 (Bloomberg) -- Klabin SA, Latin America’s biggest paper maker, advanced in Sao Paulo trading after Bank of America Corp. raised its rating on the stock, citing the outlook for the domestic market.

Klabin advanced 0.4 percent to 4.90 reais at the 3 p.m. New York time close. Earlier, the shares rose as much as 2.5 percent.

Investors should look past the “overhang” from the state development bank’s sale of Klabin shares and focus on the “attractive” valuation, Thiago Lofiego and Felipe Hirai, analysts at Bank of America in Sao Paulo, wrote in a note to clients dated yesterday. The company trades at a 10 percent discount to Brazilian peers, according to the analysts.

“Klabin is an attractive way to get exposure to Brazil’s solid macro environment,” the analysts wrote. They raised their recommendation on the shares to “buy” from “underperform.”

Klabin said in a September regulatory filing that BNDESPar, the investment arm of the development bank, had sold 30.5 million preferred shares, reducing its stake in the stock class to 26 percent. The lender’s total planned sale may be more than halfway complete, according to Bank of America.

To contact the reporter on this story: Alexander Cuadros in Sao Paulo at acuadros@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulous@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.