Agora cuts recommendation on Ultrapar to "hold"

(SeeNews) - Oct 19, 2011 - Agora brokerage on Monday downgraded its recommendation on the shares of Brazilian fuel and petrochemical firm Ultrapar (SAO:UGPA4; NYSE:UGP) to "hold" from "buy" in view of the stock's low potential for rise in comparison with the Ibovespa benchmark index of the Sao Paulo stock exchange.

On the other hand, the analysts lifted the share price target to BRL 32.60 from the previous BRL 35.60, extending the time horizon with 12 months to December 2012.

Despite the recommendation's downward revision, Ultrapar is one of the best managed companies in the market, with a prominent position in the petrochemical industry and a history of favourable acquisitions, Agora outlined.

Hence, the cut mirrors the global perspective for reduction in the pace of economic activity and not factors relevant to Ultrapar itself, the brokerage noted.

Yesterday, the company's shares closed up 0.61% at BRL 31.29 in Sao Paulo.

(BRL 1 = USD 0.57/EUR 0.412)

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