Soc. Quimica & Minera de Chile SA, Chile’s largest fertilizer producer, rose the most in a week as global peers advanced and a local brokerage firm said investors should buy the stock.
Soquimich, as the company is also known, gained 6 percent to 24,901 pesos at 3:15 p.m. New York time, the most since Sept. 27. Chile’s benchmark Ipsa index jumped 2.6 percent, ending a five-day losing streak.
“There have been several new ‘buy’ recommendations and foreign peers are also rising, so that helps,” German Guerrero, a partner at Santiago-based brokerage firm MBI Servicios Financieros, said in a phone interview today.
IM Trust SA Corredores de Bolsa rated the company at “buy” with a year-end 2012 price estimate of 29,680 pesos, according to a report sent today by e-mail to customers. “High price of potash momentum, due to strong demand and restricted supply, is not fully internalized in the current stock price,” analysts Jose Manuel Edwards and Francisca Manuschevich wrote in the note.
Credit Suisse AG increased its rating for the company’s American depositary receipts to “outperform” from “neutral” on Sept. 29, and Banchile-Citi, the joint research department of Banco de Chile and Citigroup Inc., raised the company to “buy” from “hold” on Sept. 28, according to data compiled by Bloomberg.
The Mosaic Co., the U.S. fertilizer maker formed by a Cargill Inc. unit merger, rose 5.8 percent to $51.92, while Potash Corp. of Saskatchewan Inc., the world’s largest fertilizer producer by market value, climbed 7.4 percent to C$46.62.