Cemargos Rallies on Deutsche Bank’s Profit Outlook: Bogota MoverChristine Jenkins
Cementos Argos SA, Colombia’s largest cement maker, rallied to a three-month high as Deutsche Bank AG said the company may exceed the bank’s forecast for a 38 percent increase in a measure of profit.
The common shares rose 1.2 percent to 8,730 pesos at 2:08 p.m. in Bogota after earlier gaining 2.7 percent to the highest intraday level since April 5. The Colcap index increased 1.1 percent. Medellin-based Cemargos’s shares pared their drop this year to 14 percent.
Earnings before interest, tax, depreciation and amortization in the company’s second quarter may increase to 256 billion pesos from 185 billion pesos in the same period a year earlier, according to Deutsche Bank analysts Esteban Polidura and Daniela Najar. There’s “upside potential” to the second-quarter estimate, they said in an e-mailed research report.
“An advantageous calendar effect along with solid infrastructure activity in Colombia, Panama and the Caribbean should back strong volume growth in the region,” they wrote.