Brazil's Duratex Jumps as Pactual Forecasts Strong Demand From Builders
Duratex SA, the Brazilian producer of wood panels and bathroom fixtures, jumped to the highest in two weeks after Banco BTG Pactual said "strong" demand from homebuilders will boost the company's growth.
Duratex rose 3.7 percent to 16.50 reais at 11:44 a.m. New York time, leading gains on the IBrX index of the 97 most-traded stocks in Sao Paulo. Shares rose as high as 16.51, the highest intraday price since March 23.
"Lower interest rates, higher credit availability and increasing disposable income should continue to offer support" to Duratex's growth, wrote analyst Edmo Chagas, who reiterated his "buy" rating on the company.
The government's plan to help finance the construction of 2 million low-income homes by 2014 and reduced taxes on manufactured products will help demand, the Rio de Janeiro-based analyst wrote. Continued consolidation in the industry will likely boost the company's pricing power, he said.
To contact the reporter on this story: Paulo Winterstein in Sao Paulo at firstname.lastname@example.org.