July 7 (Bloomberg) -- Localiza Rent a Car SA, Latin America’s biggest car-rental company, advanced the most in a week in Sao Paulo after Bank of America Corp. boosted its estimates for second-quarter sales.
Localiza gained 2.4 percent to 27.55 reais at the 4:15 p.m. New York time close, the most since June 28. The stock was unchanged this year through yesterday, compared to a 9.7 percent drop for the benchmark Bovespa index.
Bank of America raised its forecast for revenue growth in the car-rental segment to 30 percent from 20 percent, and in the fleet-management division to 24 percent from 21 percent, according to a note to clients yesterday from analysts including Sara Delfim. Localiza will release quarterly results on July 13, according to data compiled by Bloomberg.
“Historically, Localiza outperforms the market a few days before reporting earnings,” the analysts wrote. “Our estimates could be conservative, especially for the car rental and fleet divisions. Localiza should report strong earnings, likely beating market expectations.”
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