- Shares jumped as much as 6.5% Friday following upgrade
- JPMorgan, Credit Suisse give company buy ratings this month
Banco Santander SA’s Mexican unit jumped to a six-month high after JPMorgan Chase & Co. recommended investors buy the stock, becoming the third major investment bank to turn bullish on the bank this month.
Shares of Grupo Financiero Santander Mexico SAB added 2.8 percent to 30.41 pesos at 1:45 p.m. in Mexico City, rising for a seventh day, after surging as much as 6.5 percent. The company reported Thursday that third-quarter profit rose 6.8 percent from the same period a year earlier as the size of its loan portfolio swelled 19 percent.
JPMorgan, which had rated the stock a hold, joins Credit Suisse Group AG in giving the company a buy rating this month. Santander Mexico is well positioned to take advantage of an economic recovery in Mexico, according to Eduardo Nishio, an analyst at Brasil Plural FIA in Sao Paulo, who has a neutral rating.
“Management is willing to invest in the country,” Nishio said. “So the story of earnings-per-share growth can unfold in the next two years.”