Odontoprev SA (ODPV3), a dental benefits company, climbed the most in three weeks after profit beat analysts’ forecasts as the company increased the number of plans sold to individuals.
The shares rose 1.1 percent to 9.01 reais at 2:02 p.m. in Sao Paulo, the biggest gain on a closing basis since Oct. 8. The BM&FBovespa Small Cap Index fell 0.4 percent.
Odontoprev is focusing on selling dental plans to consumers and smaller businesses through bank branches after forming a partnership with Banco do Brasil SA (BBAS3), founder Randal Zanetti said in an interview June 11. The company bolstered its ability to pursue the strategy when Banco Bradesco SA (BBDC4) agreed Oct. 14 to raise its stake in Odontoprev to 50.01 percent.
“Growth is more dependent on contracts (primarily small and medium enterprises) that could bear worse economics than large corporate plans,” Thiago Macruz and Felipe Cruz, analysts at Itau BBA, wrote in a research note to clients yesterday.
Odontoprev’s adjusted net income rose 22 percent in the third quarter to 43.2 million reais ($19.8 million) from a year earlier, according to data compiled by Bloomberg. That compares with an average estimate of 41.9 million reais among five analysts. The company released its results after the market closed yesterday.
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