SM Prime Holdings Inc. climbed the most in more than a week after Macquarie Group Ltd. upgraded the largest Philippine shopping mall operator, predicting its shares will beat the nation’s main stock index in the next 12 months. 

SM Prime rose 3.5 percent to 6 pesos at the close of trading in Manila, compared with a 1.9 percent gain in the Philippine Stock Exchange Index.

The stock earlier surged as much as 6.9 percent, its most in intraday trading since Oct. 31.

Manila-based SM Prime was raised to “outperform” from “neutral” by Macquarie analyst Alex Pomento, saying the stock’s 31 percent slump from end-October to Nov. 21 was unwarranted and didn’t reflect the value of its 31 shopping malls.

He kept his 12-month share price target at 7.56 pesos.

“The recent sell-down is baseless and unjustified,” Pomento said in a note released today.

“SM Prime’s rental structure guarantees a minimum income while in our view property prices definitely will not correct by as much as 50 percent next year since we do not have the oversupply concerns in the Philippines that pose a threat to other markets.”

SM Prime’s share price last week implies the value of the company’s shopping malls is at 18,781 pesos (US$ 376) a square meter compared with an estimated 40,000 pesos a square meter, he said.