Multiplus Poised for Four-Week High as Banco Santander Says Buy
Shares advanced 2.9 percent to 45.27 reais at 1:52 p.m. in Sao Paulo. A close at that level would be the highest since Aug. 15. The benchmark Bovespa index gained 0.5 percent.
In a report initiating coverage of the Sao Paulo-based company, Banco Santander Brasil analysts including Henrique Navarro said Multiplus has a “unique” business model, is a “cash cow company with high margins and returns,” and is positioned for growth. The bank set a 53-real target price for Multiplus by the end of 2013.
Multiplus gained 36 percent this year through yesterday, while the Bovespa advanced 4.7 percent during that same period.
To contact the editor responsible for this story: David Papadopoulos at firstname.lastname@example.org