Localiza Advances as BofA Boosts Second-Quarter Sales Estimates

Localiza Rent a Car SA (RENT3), Latin America’s biggest car-rental company, advanced the most in a week in Sao Paulo after Bank of America Corp. boosted its estimates for second-quarter sales.

Localiza gained 2.8 percent to 27.66 reais at 1:05 p.m. New York time, the most intraday since June 28. The stock was unchanged this year through yesterday, compared to a 9.7 percent drop for the benchmark Bovespa index.

Bank of America raised its forecast for revenue growth in the car-rental segment to 30 percent from 20 percent, and in the fleet-management division to 24 percent from 21 percent, according to a note to clients yesterday from analysts including Sara Delfim. Localiza will release quarterly results on July 13, according to data compiled by Bloomberg.

“Historically, Localiza outperforms the market a few days before reporting earnings,” the analysts wrote. “Our estimates could be conservative, especially for the car rental and fleet divisions. Localiza should report strong earnings, likely beating market expectations.”

To contact the reporter on this story: Alexander Cuadros in Sao Paulo at acuadros@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos in New York at papadopoulous@bloomberg.net

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