CFR Pharmaceuticals SA, Chile’s largest drug developer, advanced to a two-week high after brokerage IM Trust SA raised its target price and said a takeover last year will bring higher-than-expected sales.
The stock jumped 1.6 percent to 125.99 pesos, the highest closing price since Jan. 22. The benchmark Ipsa index rose 0.4 percent.
Santiago-based CFR’s purchase in December of Laboratorio Franco Colombiano Lafrancol SAS, the largest laboratory in Colombia, could mean higher sales and revenue growth, according to IM Trust analyst Javier Gunther. Revenue may rise 49 percent this year to $851 million, the analyst estimated. Previously he had estimated 2013 revenue of $626 million.
“We liked that the investment was for a large and consolidated company in a strategic country, instead of many small companies with the difficulties of consolidations that it would have implied,” Gunther wrote today in a report.
CFR probably will make more acquisitions, Gunther wrote in the report. Santiago-based IM Trust raised its target price to 142 pesos from 136 pesos while maintaining the stock’s rating at buy.