Cia. Pesquera Camanchaca SA, Chile’s fourth-biggest fishing and salmon farming company by revenue, rose to a nine-month high on speculation that price increases will improve profits this year.
Camanchaca rose 1.5 percent to 34 pesos at the close of trading in Santiago, its highest price since May 15, and has gained 4.6 percent in the two days since Santiago-based broker Larrain Vial rated the company a buy.
Larrain Vial, Chile’s largest equity broker, raised its recommendation from hold and said that Camanchaca may reach 39 pesos by the end of 2013, citing improved profit margins on expectations of a recovery in salmon and fish prices and benefits from a debt restructuring it’s working on, analyst Johanna Castro said in an e-mailed note dated yesterday.
“Salmon prices bottomed out in the last quarter of 2012,” Castro said in the report. “After its bank debt restructuring, cash flow will be enough to operate without additional liquidity injections or asset sales.”
Camanchaca is working on a restructuring of its $234 million in bank loans, Larrain Vial said in its report, without saying where it obtained the information. Phone calls to the company’s press department seeking comment weren’t answered.
Larrain Vial also reiterated a buy recommendation for AquaChile SA, Chile’s largest listed salmon exporter by revenue. Its shares rose 1.8 percent to 346 pesos.