Dufry Shares Rise on Brazil Duty-Free Expansion: Zurich Mover

Dufry AG rose the most in more than a year in Zurich trading after the operator of Hudson News stores in airports announced contract wins in Brazil.

The shares gained as much as 6.4 percent to 130.9 Swiss francs, the steepest intraday advance since April 2012.

Dufry won contracts to run shops in five airports including the duty-free area in Sao Paulo’s third terminal, the Basel-based company said today. The retailer, which is investing as much as $275 million on the projects, is expanding the Hudson duty-paid format into Brazil and is also forming a joint venture with Brasif to run the duty-free businesses in that market.

The agreements will help Dufry to consolidate its position as Brazil’s largest travel retailer, according to Rene Weber, an analyst at Bank Vontobel who has a buy recommendation on the stock and a price estimate of 135 francs.

“Brazil will come back as an important growth driver,” Weber wrote. “We view this as a positive step, but expect that the concession fee is higher than before.”

The stock traded 3.5 percent higher at 130.40 Swiss francs at 10:38 a.m. in Zurich. That gave the company a market value of

3.9 billion francs ($4.2 billion).