Ripley Rallies as Bice Says Retailer a Favorite: Santiago Mover
Ripley Corp SA (RIPLEY) rose the most in almost eight weeks after local brokerage Bice Inversiones named it one of its favorite stocks on the prospect of higher earnings in 2013.
Shares of Chile’s third-largest department-store operator advanced 2 percent to 465.29 pesos at the close in Santiago, its biggest gain since Oct. 25. The Ipsa benchmark index increased 0.2 percent.
Bice added Ripley to its list of five favorite Chilean stocks and reiterated a buy recommendation on the brokerage’s view that margins in 2013 will improve after inventory problems, a store fire and opening delays sapped profits.
“Despite the accumulation of ’one-time effects’ that are affecting 2012 results, we conclude that Ripley’s shares are undervalued,” analysts Aldo Morales and Rodrigo Jacob said in an e-mailed note.
An improvement in Ripley’s Peru operations and the opening of a mall entirely owned by the company will compensate for the costs of new operations in Colombia, the analysts wrote.
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