STXNEWS LATAM-HSBC ups BM&FBovespa's target, keeps 'overweight' rating

Tue Nov 6, 2012 9:23am EST

HSBC Securities analyst Paulo Ribeiro raised the year-end 2013 price target for shares in Brazilian bourse operator BM&FBovespa SA to 16.5 reais from 15 reais. Ribeiro said market concerns regarding potential competition seem overdone. He added that the entry of new rivals in the exchange markets is a "2014 or later proposition."

Ribeiro kept his "overweight" recommendation on the stock, as the company offers "a play on Brazil's growth story" and is trading at a 45 percent discount to its emerging market peers on a 2013 estimated price to earnings basis.