Mexichem Surges Most in Six Years After Profit Spurs Buy Rating

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Mexichem SAB gained the most in six years after the petrochemical company controlled by billionaire Antonio del Valle Ruiz said profit surged last quarter.

Shares rose 7 percent Tuesday to 47.30 pesos, the biggest advance since June 1, 2009. It was the best performance on the IPC benchmark equity index.

Net income surged 29 percent to $64 million in the second quarter from a year earlier as sales of the Chlorine-Vinyl group jumped 9 percent, Mexichem said late Monday. The results prompted Credit Suisse Group AG analysts led by Vanessa Quiroga to increase their recommendation to the equivalent of buy.

“Our upgrade is driven by an inflection point we foresee in Mexichem’s profitability,” the analysts said in a research note to clients late Monday.

Mexichem forecasts double-digit growth in earnings before interest, taxes, depreciation and amortization this year, Chief Executive Officer Antonio Carrillo said on the company’s second-quarter earnings call on Tuesday.

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