(Corrects company name in first paragraph.)
BRF SA, Brazil’s largest foodmaker, rose to a record high as Grupo BTG Pactual analysts said the election of new chairman Abilio Diniz could benefit the company.
Shares gained 1.9 percent to 45.99 reais at 2:27 p.m. in Sao Paulo. A close at that level would be the highest since the stock started trading in 1997, according to data compiled by Bloomberg. The benchmark Bovespa index advanced 1.5 percent.
BRF shareholders at a meeting yesterday chose Diniz, chairman of retailer Cia. Brasileira de Distribuicao Grupo Pao de Acucar, to replace Nildemar Secches, who is retiring after heading the board since 2007. The Sao Paulo-based foodmaker will benefit from Diniz’s “renowned style of more aggressive management,” BTG Pactual analysts Thiago Duarte, Fabio Monteiro and Enrico Grimaldi wrote in a research note to clients today.
“We regard Mr. Diniz as a strong institutional figure,” the analysts wrote. “At the end of the day we believe he has what it takes to make a positive contribution.”
BRF has gained 9 percent this year, while the Bovespa has fallen 6.9 percent.
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