13 October 2009

Copec Rises to Highest Since 2008 on Celfin Rating

By Nathan Gill
Oct. 13 (Bloomberg) -- Empresas Copec SA, Chile’s largest producer of wood pulp, climbed to the highest since May 2008 after Celfin Capital SA recommended investors buy the shares.

Copec, the South American country’s largest publicly traded company, advanced 1.6 percent to 7,615 pesos in Santiago trading, its highest price since May 2008.

Celfin, a Chilean brokerage, gave the Santiago-based pulp producer a “buy” rating in new coverage, citing its “strong growth” outlook and higher pulp prices, Cesar Perez, a managing director, wrote today in an e-mailed note to clients.

Copec is “poised to deliver strong growth in coming years, on factors including better pricing, higher volumes and new projects,” Perez said. “It may well engage in acquisitions in the region, in both forestry and energy, including further integration with its main raw material -- acquisition of forests.”

The BHKP global pulp price index advanced to the highest since December while the NBSK gauge climbed to its highest since November, according to Bloomberg data posted today.

Celfin gave Copec a 12-month share-price estimate of 8,989 pesos.