Jan. 15 (Bloomberg) -- Parque Arauco SA, Chile’s third-largest shopping-mall operator, rose the most in three months after Banco BTG Pactual SA recommended buying the stock as a bet on growing consumer demand in the Andean region.
Shares in the Santiago-based company advanced 3 percent to 1,200.7 pesos at the close in Santiago, the biggest gain since Oct. 18. The Ipsa benchmark index fell 0.1 percent.
BTG Pactual, an investment bank based in Sao Paulo, initiated coverage of the shopping-mall operator with a buy rating and price target of 1,500 pesos for the next 12 months, 25 percent above its current price. Chile’s gross domestic product will expand 4.65 percent this year, outpacing Brazil’s estimated growth of 3.5 percent for 2013, according to a Bloomberg survey of analysts.
Parque Arauco “offers a back-door way to play the consumption story in the Andean region,” BTG Pactual analysts Marcello Milman and Gustavo Cambauva wrote today in an e-mailed note to clients.
Mall Plaza SA, a unit of retailer SACI Falabella, and Cencosud SA are the biggest and second-biggest shopping mall operators in Chile, BTG Pactual said in its report. Falabella and Cencosud are both based in Santiago.
To contact the reporter on this story: Eduardo Thomson in Santiago at firstname.lastname@example.org
To contact the editor responsible for this story: David Papadopoulos at email@example.com