BTG Pactual sees Suzano shares even cheaper than before and Bradesco BBI reinforces the purchase of 3 shares; the most read in agriculture
The end of September and the first week of October featured relevant themes in the agro. Among them, the Bradesco BBI reinforces the purchase of 3 shares, a bargain, the top pick and the discounted one.
I and Suzano (SUZB3) said that its cellulose production in 2024 (excluding Cerrado) will be 4% below its nominal production capacity, as the volume would not bring an adequate return for Suzano at a time of a more complex cellulose market.
According to the BTG Pactualwhich sees the share even cheaper than before, the measure reinforces the commitment of the company, leader in the segment, to discipline the sector and optimize its overall ROIC (return on invested capital).
The themes that stood out the most in the last week
5th place – CVM publishes new standard for Fiagros; understand the changes
The Securities and Exchange Commission (CVM) published this Monday (30) CVM Resolution 214, which creates specific regulations for Investment Funds in Agribusiness Production Chains (Fiagros)
According to the CVM, the new regulation seeks to:
- facilitate access for dynamic and innovative local agribusiness to Brazilian public savings resources through investment funds.
- provide Fiagros with standards of conduct, informational transparency and governance that serve to protect investors, a fundamental mandate of the Authority.
4th place – M. Dias Branco (MDIA3): XP downgrades action and cites 3 reasons; look
A XP Investimentos downgraded its recommendation to M. Dias Branco (MDIA3) from purchase to neutral (target price of R$31.30 and potential for an increase of 25%).
According to the broker, there is a negative asymmetry for short-term profits, driven by:
- significant uncertainty regarding the extent of the company's price pass-throughs and their potential impact on volumes as competitors have lagged behind;
- margin pressures due to increased import costs of raw materials (particularly wheat and palm oil) in a devalued BRL;
- persistently high SG&A expenses (administrative, sales and general expenses).
Top 3 do agro
🥉 3rd place – AgroGalaxy (AGXY3) has judicial recovery granted by the Court, with debts of R$ 4.67 billion
A AgroGalaxy (AGXY3) and its subsidiaries received this Tuesday (01) approval from the 19th Civil and Environmental Court of the District of Goiânia for their request for judicial recovery. The company informed the market through a statement to the CVM. The company informed that the full court decision is available on its IR website.
🥈 2nd place – 'I don't see a crisis in the sector, but AgroGalaxy (AGXY3) is a concern', says CEO of Boa Safra (SOJA3)
The CEO of Good Harvest (SOJA3), Marino Colpo, said, in an exclusive interview with Money Times, that the request for judicial recovery and AgroGalaxy (AGXY3) worries the agribusinessbut said he did not see a crisis in the sector.
“The news is bad for the market in general, as it is such a large and sophisticated company, with access to the market like AgroGalaxy. The sector faces a major challenge, which is access to credit, because the producer always needs cash, and the input purchasing cycle takes place between August and October, but the harvest only begins in February. There is a billing challenge.”
🥇 1st place – 'There is a crisis in agriculture and we could see judicial recovery of other companies on the Stock Exchange', sees director of the Ministry of Agriculture
The director of agricultural risk management at the Ministry of Agriculture and Livestock (Map)Jonatas Pulquerio, said, in conversation with the Money Times, that the agro of Brazil is experiencing a structural problem. The sector raised an alert after the request for judicial recovery of the AgroGalaxy (AGXY3) and the Agro Portal.
Pulquerio reinforces that the big problem is the lack of liquidity with the maturity of short-term debts. “It is difficult to predict other cases (of RJ's from listed agricultural companies). But the reality that I was told in the conversation with Aqua Capital is that the producer is in trouble. And if this scenario exists, let's look at other RJ's.”
Pulquerio was dismissed on Wednesday (1), after the position was requested by the PSD (Social Democratic Party), party of minister Fávaro. The tendency is for the Minister of Agriculture, Carlos Fávaro, to nominate a new name for the position. Pulquério spent 18 months in the department and must return to Mato Grosso, where he is a career civil servant