July 21 (Bloomberg) -- Duratex SA, a Brazilian producer of wood panels and bathroom fixtures, gained the most in two weeks after Banco BTG Pactual SA said the company will benefit from growing credit in Latin America’s biggest economy.
Duratex gained 3.2 percent, the most since July 6, to 17.64 reais at the close of trading in Sao Paulo at 4 p.m. New York time.
“The company is very leveraged to the domestic macro outlook, and should benefit from credit expansion and better income distribution,” Pactual said in an e-mail to clients today. “We continue to project double-digit profit growth over the next three years.”
Brazil’s government may reduce reserve requirements on savings deposits in a bid to step up loans for homebuyers, O Globo reported, without saying where it obtained the information. Finance Ministry officials didn’t answer calls from Bloomberg News to their office and mobile phones.
The company is also a “strong buy” because of prospects for price increases and mergers and acquisitions in the industry, according to Pactual.
To contact the reporter on this story: Alexander Cuadros in Sao Paulo at email@example.com
To contact the editor responsible for this story: David Papadopoulos in New York at firstname.lastname@example.org