Amil Participacoes SA (AMIL3) fell the most in a month after UBS AG cut its rating on the health insurance provider to “neutral” from “buy,” citing its price relative to earnings following a two-month rally.
Amil, the Rio de Janeiro-based insurer that agreed to buy Medial Saude SA last year, fell 3.7 percent to 14.45 reais in Sao Paulo trading at 5 p.m. close. The stock surged 20 percent through yesterday from its May 18 low.
“We believe that the stock is already pricing in most of the benefits from a successful turnaround at Medial,” Gustavo Piras Oliveira, an analyst at UBS, wrote in a note to clients.
Amil fetches 44 times reported earnings, compared with a price-to-earnings ratio of 13 for the Bovespa stock index, according to Bloomberg data.
OdontoPrev, which trades at 32 times profits, dropped 1.3 percent to 16.30 reais today.
To contact the editor responsible for this story: David Papadopoulos at firstname.lastname@example.org