June 22 (Bloomberg) -- Natura Cosmeticos SA, Brazil’s biggest cosmetics maker, closed at a record high for a fourth session after Raymond James & Associates Inc. cited the company’s “strong momentum” as it expands in Brazil and abroad.
Natura gained 0.3 percent to 41.03 reais in Sao Paulo trading.
Natura’s earnings will benefit from launches of products specific to different regions of Brazil as well as other Latin American markets such as Mexico and Colombia, Raymond James analyst Daniela Bretthauer wrote in a note to clients today.
“Natura should report strong second-quarter results,” Bretthauer wrote. Raymond James has an “outperform” rating on the stock.
The rally may ease after shares surged 9.6 percent in the past week, compared with an increase of 0.6 percent for the benchmark Bovespa index, Bretthauer said.
“Recent outperformance relative to our coverage universe and the index is reducing the upside potential and making valuation a bit rich,” the analyst wrote.
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