April 5 (Bloomberg) -- Cia. Hering, Brazil’s third-biggest clothing retailer by market value, rose to a three-week high after the investment bank Itau BBA recommended buying the stock because of prospects for revenue gains.
The shares advanced 4.8 percent to 38.90 reais at the close of trading in Sao Paulo, the highest since March 13. The benchmark Bovespa index gained 0.7 percent.
Itau BBA cited “indications of healthy same store sales in March, the first month of the autumn collection, and prospects of strong sales” at Hering’s stores as reasons to raise its recommendation to the equivalent of buy from hold, according to a note to clients by analysts Juliana Rozenbaum and Vitor Paschoal dated yesterday.
Hering added 1.6 percent yesterday as Santander Brasil SA raised its recommendation on the stock to buy.
Hering’s sales totaled 1.49 billion reais ($739 million) in 2012, compared with an average estimate of 1.51 billion reais among 14 analysts surveyed by Bloomberg.
The retailer’s shares have declined 7.4 percent this year, while the Bovespa dropped 9.7 percent during the same period.
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