Banchile determines target price for D&S

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SANTIAGO. -  The Banchile Investments brokerage firm determined a target price of $225 on Friday for stocks belonging to the Chilean retail giant D&S.  Banchile also maintained its classification of “stable/ moderate risk” for the purchase of the stock, after its failed merger with the Chilean company Falabella.

The new target price for D&S, owner of the largest chain of supermarkets in Chile, has an investment horizon ending in December of 2008.

“In our opinion, after the adverse outcome of the potential merger with Falabella, D&S will concentrate their efforts on maximizing the performance of their operations in Chile and may continue to evaluate the possibility of international expansion”, a Banchile report explained.  

D&S stocks closed at $193.8 at the Santiago Stock Exchange on Thursday.

Banchile said that although current D&S values are attractive, “the potential growth of its cash flows in less aggressive compared to other companies in the industry, which are currently concentrating on regional expansion of operations”.