Brazil's Duratex Gains as Pactual Sees Higher Profits on Credit Growth
Duratex SA, a Brazilian producer of wood panels and bathroom fixtures, gained the most in two weeks after Banco BTG Pactual SA said the company will benefit from growing credit in Latin America’s biggest economy.
“The company is very leveraged to the domestic macro outlook, and should benefit from credit expansion and better income distribution,” Pactual said in an e-mail to clients today. “We continue to project double-digit profit growth over the next three years.”
Brazil’s government may reduce reserve requirements on savings deposits in a bid to step up loans for homebuyers, O Globo reported, without saying where it obtained the information. Finance Ministry officials didn’t answer calls from Bloomberg News to their office and mobile phones.
Duratex gained 3.3 percent in Sao Paulo trading to 17.66 reais at 11:02 a.m. New York time. Shares earlier rose as much as 4 percent, the most on an intraday basis since July 6.
The company is also a “strong buy” because of prospects for price increases and mergers and acquisitions in the industry, according to Pactual.