Duratex Gains Most Since May on “Outperform” Rating
Duratex SA, a Brazilian producer of wood panels and bathroom fixtures, rose the most in nine months after being rated “outperform” in new coverage at JPMorgan Chase & Co.
Duratex climbed 5.3 percent to 16.30 reais at 3:15 p.m. New York time, the biggest gain since May. The Bovespa index advanced 1.8 percent to 65,755.66.
Brazil’s growing housing market and incomes are likely to be the main drivers for Duratex’s sales, Debbie Bobovnikova and Lucas Ferreira, analysts at JPMorgan, wrote in a note to clients dated today. Investors have already accounted for higher borrowing costs as the central bank works to curb inflation, the analysts said.
“Interest-rate headwinds are largely priced in and make for an attractive entry point,” Bobovnikova and Ferreira wrote.
Yields on interest-rate futures contracts indicate that investors expect rates to end the year at 13 percent. Duratex fell 13 percent this year through yesterday.
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