Feb. 15 (Bloomberg) -- Minerva SA advanced to a five-year high after Morgan Stanley resumed coverage of the Brazilian meatpacker with the equivalent of a buy recommendation.
Shares gained 3.1 percent to 13.39 reais at the close of trading in Sao Paulo, the highest since December 2007. The Bovespa small cap index, of which Barretos-based Minerva is a member, fell 0.1 percent.
Animal protein stocks should benefit from cyclical growth in 2013, with Brazilian beef being the “highlight” of the year, Morgan Stanley analysts including Javier Martinez de Olcoz Cerdan wrote in a research note on Brazilian meatpackers’ stocks. They listed Minerva as their “top pick” in the industry and set a price target of 16.50 reais.
Marfrig Alimentos SA rose 1.3 percent to 10.01 reais after the analysts raised it to the equivalent of buy. The company should show cyclical and structural growth in earnings before interest, taxes, depreciation and amortization, according to the report.
Minerva shares have advanced 104 percent in the past year, while Marfrig has gained 9.9 percent.
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