Money Times' 'Buy or Sell' highlights of the week (Image: Agência Petrobras)
Big Bank Stock Updates Petrobras (PETR3;PETR4) gained prominence in the Money Times this week.
O BB Investimentos introduced a new target price for the state-owned company's shares, of R$48.50, maintaining the purchase indication. “Our assessment derives from a ten-year Discounted Cash Flow (DCF) method, assuming a WACC of 12.6% and a growth in perpetuity (g) of 2.0%”, he says.
O JP Morgan is also confident and raised PETR3's recommendation from neutral to purchase, with a target price of R$49. The foreign bank points out that the state-owned company's solid free cash flow (FCF) and the valuation discounted justify the change.
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See the analysis and more highlights in the 'Buy or Sell?' below:
Petrobras (PETR4): Banks recommend purchase — one sees dividends of R$3.49 per share in a conservative view
When raising Petrobras' target price, BB Investimentos said that the state-owned company has demonstrated solid financial performance in recent years, relying on a combination of low extraction costs, oil at a favorable level and a robust operational system.
JP Morgan — which has Petrobras as the main choice in the oil and gas sector in Latin America, alongside Prio (PRIO3) — assesses that cost efficiency is one of the highlights, which becomes even more relevant when compared to the below-expected performance of Brazilian junior oil companies.
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The biggest dividend payers on the stock exchange, according to BTG
According to the BTGinvestors have been more skeptical about the continued appreciation of the Ibovespa. The bank says there is concern about the fiscal situation (the budget proposal for 2025 seems unrealistic) and uncertainty about how the monetary tightening cycle in Brazil could affect local shares.
“In fact, local investors are buying record levels of protection due to concerns that the Ibovespa may correct – the put/call ratio is currently at 2.4x (versus an average of 1.2x),” he says.
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Banco do Brasil (BBAS3): Investors are on the back foot with the action
A XP met with investors to understand sentiment in the financial sector. The impressions were good. After all, with the bullish bet on Selicnothing better than being positioned on a bench.
“Banks are seen as a safe haven amid rising interest rates and falling interest rates. default“, said the broker.
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Small and powerful: 8 small caps with potential of up to 52.6%, according to Safra
O Harvest released its recommended portfolio of small caps for the period between September and October, without changes in composition.
The portfolio is made up of Marfrig (MRFG3), Plano & Plano (PLPL3), Alupar (ALUP11), SBF Group (SBFG3), Iguatemi (IGTI11), Panvel (PNVL3), Smart Fit (SMFT3) e Copasa (CSMG3).
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Taesa (TAEE11): Itaú calculates dividends and tells you if it's time to buy shares
O Itaú BBA updated its expectations for transmitters and reiterated the 'market performance' recommendation, that is, performance in line with the market, equivalent to neutral, for the Taesa (TAEE11), with a target price of R$37.5, previously at R$36.7.
According to analysts, the stock trades at a premium in relation to the Alupar (ALUP11) e ISA Cteep (TRPL4), that is, it is more expensive than its competitors. The electricity IRR, the internal rate of return, is 7.6%, which, in Itaú's view, seems fair given its very low-risk business model.
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