Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Hypermarcas Surges as JPMorgan Says Buy on Sales Outlook

July 18 (Bloomberg) -- Hypermarcas SA, the Brazilian maker of consumer products including diapers and generic drugs, rose to a five-week high as JPMorgan Chase & Co. recommended the stock, citing the potential for improved revenue.

The shares advanced 3.1 percent to 16.40 reais at the close of trading in Sao Paulo, the highest level since June 10. The benchmark Ibovespa added 0.5 percent.

JPMorgan expects Hypermarcas’s sales to “remain resilient despite the slowdown in the macroeconomic environment” because its products are inexpensive and the company has improved its sales team, according to a note to clients today. The company manufactures more than 190 consumer products.

“Hypermarcas will likely prove to be a defensive stock in a challenging second half of 2013,” Andrea Teixeira, Joseph Giordano and Pedro Leduc, analysts at JPMorgan, wrote in the research report. They raised their rating to buy from the equivalent of hold.

The JPMorgan analysts projected that Hypermarcas’s revenue will increase 9.7 percent to 4.3 billion reais ($1.9 billion) this year from 2012. The Sao Paulo-based company’s average price for pharmaceutical items is about 10 reais and for personal-care products, 8 reais, according to the report.

Analysts covering the Brazilian economy cut their estimates for the country’s gross domestic product growth in 2013 to 2.31 percent from 2.34 percent, according to a weekly survey from the central bank published July 15.

To contact the reporter on this story: Denyse Godoy in Sao Paulo at dgodoy2@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.