by Jeffrey T Lewis
SAO PAULO – Shares of Rede D’Or São Luiz SA rose 6.1% after Brazilian investment bank BTG Pactual set a target price for shares well above the current price level.
Shares amounted to 27.72 riyals, equivalent to $5.41, and were down 34% from last year, as of Monday’s closing. Brazil’s benchmark Ibovespa was up 1.1% in late morning trade.
BTG has set a target price by the end of 2023 at SAR38 per share.
BTG named Rede D’Or its favorite healthcare big cap after the company merged with insurance company Sul America SA late last year. BRG analysts said the new company should benefit from several synergies that haven’t been priced in yet, and earnings momentum is set to gradually improve.
Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com
(end) Dow Jones Newswires
01-17-23 1001ET