Bloomberg Línea — With a new cycle of interest rate cuts starting in Brazil last week, financial market analysts are looking at August as a month to increase exposure to stocks that may benefit from a lower Selic benchmark going forward.
Their assessment is that monetary easing will boost the general perception of diminishing risk in Brazil - as signalled by the upgrade of Brazil’s sovereign credit rating by Fitch Ratings, in addition to the positive outlook from S&P Global Ratings - driving up Brazilian stock prices.
The Ibovespa rose 24.5% between the year’s low point at the end of March and the close of July.
From Bloomberg Línea’s survey of 14 brokerages and investment banks, Brazilian stock exchange operator B3 (B3SA3), car rental company Localiza (RENT3) and Grupo Soma (SOMA3), owner of brands such as Farm, Hering and Animale, stand out among analysts’ favorites for this month.
Petrobras’ preferred shares (PETR4) have returned to the list of “buys”, with four recommendations, after the announcement of the new dividend policy was not interpeted as a negative surprise by the market.
According to BTG Pactual, the investment thesis may be further favored if the company adjusts gasoline and diesel prices in line with international prices in August.
On the other hand, Arezzo (ARZZ3) and Banco do Brasil (BBAS3) exited the group of recommended stocks this month.
In July, the Ibovespa (IBOV) rally continued and the stock market rose 3.3%, accumulating a year-to-date increase of 11%. Despite the gains, financial market analysts say the Brazilian stock market - in general - remains cheap in terms of the price-to-earnings multiple.
BB Investimentos’ research team pointed out that new discussions on measures to expand tax collection, in addition to other reforms such as income tax and foreign income, should enter the agenda with the return of the parliamentary recess this month and “will be fundamental for the continued entry of foreign [investors], with important positive reflections on the stock exchange”.
The portfolio compiled by Bloomberg Línea brings together the recommendations of 14 brokers or investment banks: Ágora, Ativa Investimentos, BB Investimentos, BTG Pactual, CM Capital, Empiricus Research, Genial Investimentos, Guide, Nova Futura, Órama, RB Investimentos, Santander Corretora, Warren and XP Investimentos and is composed of ten stocks (or more in case of
These are stock brokers’ main recommendations for August
Ágora Investimentos
- Assaí (ASAI3)
- Copel (CPLE6)
- Ecorodovias (ECOR3)
- Eletrobras (ELET6)
- Itaú Unibanco (ITUB4)
- JHSF (JHSF3)
- Natura (NTCO3)
- Petrorio (PRIO3)
- Rede D’Or (RDOR3)
- Vale (VALE3)
Ativa Investimentos
- Itaú Unibanco (ITUB4)
- Vale (VALE3)
- Petrobras PN (PETR4)
- BTG Pactual (BPAC11)
- Hapvida (HAPV3)
- Bradesco (BBDC4)
- BB Seguridade (BBSE3)
- Minerva (BEEF3)
- Cogna (COGN3)
- Copel (CPLE6)
- Eletrobras (ELET3)
- PetroRio (PRIO3)
- Sabesp (SBSP3)
- Grupo Soma (SOMA3)
- Totvs (TOTS3)
BB Investimentos
- ABC Brasil (ABCB4)
- B3 (B3SA3)
- Direcional (DIRR3)
- Grupo Mateus (GMAT3)
- Itaú Unibanco (ITUB4)
- Petrobras (PETR4)
- Rede D’Or (RDOR3)
- Localiza (RENT3)
- Simpar (SIMH3)
- Vale (VALE3)
BTG Pactual
- Lojas Renner (LREN3)
- Rumo (RAIL3)
- B3 (B3SA3)
- Itaú Unibanco (ITUB4)
- Hapvida (HAPV3)
- Petrobras PN (PETR4)
- Gerdau (GGBR4)
- Mercado Livre (MELI34)
- Rede D’Or (RDOR3)
- MRV (MRVE3)
CM Capital
- Aeris (AERI3)
- CBA (CBAV3)
- Direcional (DIRR3)
- Metalúrgica Gerdau (GOAU4)
- Pague Menos (PGMN3)
Empiricus Research
- Vale (VALE3)
- B3 (B3SA3)
- Direcional (DIRR3)
- Localiza (RENT3)
- Cyrela (CYRE3)
- Assaí (ASAI3)
- 3Tentos (TTEN3)
- Magazine Luiza (MGLU3)
- Hapvida (HAPV3)
- Grupo SBF (SBFG3)
Genial Investimentos
- Aliansce Sonae (ALSO3)
- Ecorodovias (ECOR3)
- PetroRio (PRIO3)
- Vale (VALE3)
- WEG (WEGE3)
- CVC Brasil (CVCB3)
- Engie (EGIE3)
- Copasa (CSMG3)
- Fleury (FLRY3)
- Totvs (TOTS3)
Guide Investimentos
- Aliansce Sonae (ALSO3)
- Banco do Brasil (BBAS3)
- Cruzeiro do Sul Educacional (CSED3)
- Ecorodovias (ECOR3)
- JBS (JBSS3)
- Rede D’Or (RDOR3)
- Totvs (TOTS3)
- Vale (VALE3)
- Vamos (VAMO3)
- Vivara (VIVA3)
Nova Futura Investimentos
- Arezzo (ARZZ3)
- B3 (B3SA3)
- Bradesco (BBDC4)
- Carrefour (CRFB3)
- CSN (CSNA3)
- JBS (JBSS3)
- JHSF (JHSF3)
- Rede D’Or (RDOR3)
- Simpar (SIMH3)
- Vale (VALE3)
Órama Investimentos
- Rede D’Or (RDOR3)
- BTG Pactual (BPAC11)
- Vale (VALE3)
- Vivara (VIVA3)
- PetroRio (PRIO3)
RB Capital
- São Martinho (SMTO3)
- Track & Field (TFCO4)
- Multiplan (MULT3)
- Vale (VALE3)
- Embraer (EMBR3)
- Iguatemi (IGTI11)
- Smartfit (SMFT3)
- Grupo Soma (SOMA3)
- Raia Drogasil (RDAL3)
- Plano & Plano (PLPL3)
- Itaú Unibanco (ITUB4)
- Eztec (EZTC3)
- Equatorial (EQTL3)
- Minerva (BEEF3)
- Fleury (FLRY3)
- PetroRio (PRIO3)
Santander Corretora
- Banco do Brasil (BBAS3)
- Cyrela (CYRE3)
- Equatorial (EQTL3)
- Itaú Unibanco (ITUB4)
- Localiza (RENT3)
- Multiplan (MULT3)
- Petrobras ON (PETR3)
- Rumo (RAIL3)
- Totvs (TOTS3)
- Vale (VALE3)
- Vivara (VIVA3)
Warren
- Engie (EGIE3)
- Irani (RANI3)
- PetroRio (PRIO3)
- Bradesco (BBDC4)
- Arezzo (ARZZ3)
- Grupo Soma (SOMA3)
- Armac (ARML3)
- Banco ABC Brasil (ABCB4)
- Iochpe Maxion (MYPK3)
- Copel (CPLE6)
- Vamos (VAMO3)
- Itaú Unibanco (ITUB4)
- Porto Seguro (PSSA3)
- BR Partners (BRBI11)
- Melnik (MELK3)
XP Investimentos*
- Gerdau (GGBR4)
- Assaí (ASAI3)
- Itaú Unibanco (ITUB4)
- Grupo Soma (SOMA3)
*Partial disclosure of the portfolio at XP’s request.
