BB Investimentos raises target price for Renner (LREN3) (Image: Money Times)
O BB Investimentos raised the target price for the company's shares Renner Stores (LREN3) from R$16.80 to R$18.50. Despite this, the broker highlighted that the share remains with a neutral recommendation, especially because the estimated value represents an increase of only 3% in relation to this Tuesday's price (1), which was R$ 17.95 close to 4:30 pm.
According to analyst Andréa Aznar, from BB, Renner's shares showed an upward movement, mainly after the approval of the collection of import taxes on products worth up to US$50.
“The market’s expectation is that the company will have a less fierce competitive scenario and a greater possibility of gaining market share,” he stated.
It is worth remembering that the company presented a positive balance in 2T24with improved profitability and a significant increase in profit. With this, BB considers an improvement in margins, due to an increase in sales over the next few quarters.
Furthermore, the analyst highlighted that the increase in sales follows recent macroeconomic indicators, such as low unemployment and an increase in real wages.
However, the broker understands that the company still faces the challenge of growing revenue and same-store sales, highlighting the neutral recommendation.