Hering Advances in Sao Paulo as Itau Says Buy on Sales Outlook
Cia. Hering (HGTX3), Brazil’s third-biggest clothing retailer by market value, rose to a two-week high after the investment bank Itau BBA recommended buying the stock and cited prospects for revenue gains.
The shares advanced 3.3 percent to 38.35 reais at 12:15 p.m. in Sao Paulo after earlier rising as much as 3.6 percent to the highest intraday price since March 21. The benchmark Bovespa index (IBOV) fell 0.4 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 (SANB11) 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 12 percent this year through yesterday, while the Bovespa dropped 10 percent during the same period.
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