Souza Cruz Rallies for Fifth Day on "Stellar" Quarterly Profit

Source from:  Bloomberg 08/06/2009

Souza Cruz SA, Brazil's largest tobacco company, gained for a fifth day after Citigroup Inc. raised its share-price forecast on "stellar" earnings in the second quarter. Rio de Janeiro-based Souza Cruz jumped 3.3 percent to 64.61 reais at 9:30 a.m. New York time in Sao Paulo trading. First-half profit rose to 922 million reais ($507 million) from 558 million reais a year earlier, Souza Cruz said last night. Second-quarter revenue, earnings before interest, taxes, depreciation and amortization, and net income were all above the estimates of Citigroup analyst Marc Estigarribia, according to a note to client today. "We are raising our target price to 70 reais on the back of stellar 2Q results," New York-based Estigarribia wrote. The company reported second-quarter net profit of 1.57 reais per share, compared with Citigroup's estimate of 1.13 reais, he wrote. Estigarribia raised this year's profit estimate to 4.92 reais a share from 4.45 reais previously. Profit in 2010 will likely reach 5.28 reais, compared with a previous estimate of 4.63 reais, he said. Enditem