June 21 (Bloomberg) -- Amil Participacoes SA rose in Sao Paulo trading after Banco BTG Pactual SA recommended buying the shares, saying Brazil’s health-care industry will benefit from economic growth.
“We see growth opportunities across the sector,” Pactual analysts Joao Carlos dos Santos and Pedro Montenegro wrote in a note to clients on June 18. “Demographics are favorable thanks to population aging and wage bill growth.”
Health insurer Amil’s “stronger earnings power” and pharmaceutical-distributor Profarma Distribuidora de Produtos Farmaceuticos SA’s “too cheap” valuation earned the companies “buy” ratings in new coverage at the Rio de Janeiro-based bank.
Brazil’s economy will grow 7.06 percent this year, up from a week-earlier forecast of 6.99 percent, according to a central bank survey of about 100 economists published today. Analysts increased their prediction for economic growth for the 14th straight week.
Amil gained 1.4 percent to 14.70 reais, the highest price in almost two months. Profarma lost 0.1 percent to 15.25 reais after earlier increasing as much as 1.5 percent.
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