Aug. 29 (Bloomberg) -- Multiplus SA, the frequent-flier unit of Latam Airlines Group SA’s Brazilian subsidiary, rose the most on record after JPMorgan Chase & Co. recommended buying the stock after a plunge spurred by executive departures.
The shares climbed 8.3 percent to 26.11 reais at the close of trading in Sao Paulo, the biggest one-day advance since they started trading in 2010. It was best performer on the BM&FBovespa Small Cap Index, which rose 1 percent.
The stock’s 22 percent decline this month through yesterday, driven by the recent departures of the company’s chief executive and chief financial officers, was “exaggerated,” JPMorgan analysts led by Fernando Abdalla wrote in a research note dated today. “Multiplus’s business plan remains unchanged despite the departure of the executives,” they wrote.
The Sao Paulo-based company’s decline this month compares with a 3.5 percent drop in the Brazilian small cap index.
JPMorgan’s recommendation change “is mostly explained by our perception of an exaggerated” selloff, the analysts wrote.
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