(Updates with closing prices in second paragraph.)
Oct. 21 (Bloomberg) -- LLX Logistica SA, the port company controlled by Brazilian billionaire Eike Batista, rose the most in a week after it signed a rental contract that may imply higher valuations for future agreements.
The stock climbed 2.8 percent to 3.67 reais at the close of trading in Sao Paulo. The Bovespa index increased 2.3 percent. LLX is down 5.9 percent this week, compared to the benchmark’s 0.4 percent gain.
LLX signed a rental agreement with NKT Flexibles I/S for the Acu port it’s building in Rio de Janeiro state, with annual revenue estimated at about 8 million reais ($4.5 million), according to a regulatory filing yesterday after the market closed. The deal with NKT, which makes flexible pipes for offshore oil and gas and chemicals companies, implies a rental price 2.1 times higher than UBS AG’s estimates, Sao Paulo-based analyst Victor Mizusaki said in a note to clients today.
“Announcing new contracts with offshore companies, and confirming that higher rental prices can also justify a reduction in the execution risk for this project, could provide upside potential to our price target,” Mizusaki wrote, referring to a 12-month share forecast of 8.20 reais.
--Editors: Richard Richtmyer, Marie-France Han
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