Natura Extends Record for a Fourth Day as Raymond James Cites `Momentum'
Natura Cosmeticos SA, Brazil’s biggest cosmetics maker, headed to its fourth consecutive record close after Raymond James & Associates Inc. cited the company’s “strong momentum” as it expands in Brazil and abroad.
Natura’s earnings will benefit from launches of products specific to different regions of Brazil as well as other Latin American markets such as Mexico and Colombia, Raymond James analyst Daniela Bretthauer wrote in a note to clients today.
“Natura should report strong second-quarter results,” Bretthauer wrote.
Natura gained 2.9 percent to 42.07 reais at 10:42 a.m. New York time in Sao Paulo trading. Shares have surged 12 percent in the past week, compared to an increase of 0.9 percent for the benchmark Bovespa index.
“Recent outperformance relative to our coverage universe and the index is reducing the upside potential and making valuation a bit rich,” Bretthauer wrote. Raymond James has an “outperform” rating on the stock.