Itau BBA lifts Ultrapar price target, reiterates "outperform"

(SeeNews) - Dec 13, 2011 - Itau BBA has upgraded the price target on the shares of Brazilian fuel and petrochemical firm Ultrapar (SAO:UGPA3) to BRL 41 from the previous BRL 38, reiterating the "outperform" stance.
The new price target reflects the company's third quarter earnings results, the projected stronger growth for the fuels distribution subsidiary Ipiranga between 2012 and 2013 and the expected higher margins for Ipiranga and Ultrapar's petrochemicals arm Oxiteno. Ipiranga's earnings before interest tax, depreciation and amortisation (EBITDA) are seen to grow 15% in 2012, the analysts noted.
However, the stock performance of Ultrapar may be dimmed by the reduction in the expected growth of Brazil's Gross Domestic Product (GDP) in 2012 and by the increase in the company's capex, the brokerage noted.
At 1415 local time today, Ultrapar's shares traded down 0.41% at BRL 31.72 in Sao Paulo.
(BRL 1 = USD 0.544/EUR 0.413)

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