Multiplus Advances to Four-Week High as Santander Says Buy

Sept. 12 (Bloomberg) -- Multiplus SA, the frequent-flier unit of Latam Airlines Group SA’s Brazil subsidiary, rose to a four-week high after Banco Santander Brasil SA recommended buying the stock.

Shares advanced 3.2 percent to 45.40 reais at the close of trading in Sao Paulo, the highest since Aug. 15. The benchmark Bovespa index gained 0.8 percent.

In a report initiating coverage of the Sao Paulo-based company, Banco Santander Brasil analysts including Henrique Navarro said Multiplus has a “unique” business model, is a “cash cow company with high margins and returns,” and is positioned for growth. The bank set a 53-real target price for Multiplus by the end of 2013.

Multiplus gained 40 percent this year, while the Bovespa added 5.6 percent during that same period.

To contact the reporter on this story: Denyse Godoy in Sao Paulo at dgodoy2@bloomberg.net

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