Bloomberg Anywhere Remote Login Bloomberg Terminal Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Barclays Favors Chilean Over Mexican Retailers on Andes Growth

June 6 (Bloomberg) -- Shares of Chile’s retailers may rally as their stores in Peru and Colombia boost profits while consumer demand in Mexico slows, according to Barclays Plc.

Barclays raised its stock price estimates for Santiago-based SACI Falabella and reiterated ratings equivalent to buy for it and Ripley Corp SA, citing plans to expand stores in the Andean region. It also reiterated a rating equivalent to hold for Santiago-based Cencosud SA.

“In the longer term, we still see substantial upside potential as retailers in Chile are posting higher earnings growth compared to the retailers in Mexico under our coverage,” analyst Benjamin Theurer said in an e-mailed research note to clients today.

Theurer reiterated a rating equivalent to hold for Wal-Mart de Mexico SAB and sell for Grupo Comercial Chedraui SA and Organizacion Soriana SAB.

Peru will grow 6.2 percent this year, the most among major Latin American economies, according to the median forecast of economists surveyed by Bloomberg. Colombia is expected to expand 4.1 percent and Mexico should grow 3.2 percent.

Sales at Mexican stores open at least a year dropped 3.2 percent in April, according to the National Association of Department and Convenience Stores. It was the first decline since May 2011.

To contact the reporter on this story: Eduardo Thomson in Santiago at ethomson1@bloomberg.net

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

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.