403
Sorry!!
Error! We're sorry, but the page you were looking for doesn't exist.
Itaú BBA Forecasts Bright Future For Brazil’S Stock Market
(MENAFN- The Rio Times) Itaú BBA has raised its forecast for Brazil's Ibovespa index, predicting it will hit 165,000 points by the end of 2025.
This marks a nearly 14% increase from the expected 145,000 points at the end of this year. Daniel Gewehr's team has prioritized Brazil over other Latin American markets.
The analysts see compelling valuations. The Earnings Yield Gap, which measures earnings against price adjusted for real interest rates, is now at 6.3%. This figure exceeds the historical average of 4.9%.
They expect Brazilian companies to grow their profits by about 12% from 2024 to 2025. Yet, international investors have been slow to return to Brazilian stocks.
Currently, foreign net flows are negative. Equity funds make up only 8.8% of all assets managed in the fund industry, below a recent high of nearly 10%.
The macroeconomic view remains slightly negative due to fiscal concerns and uncertainties about future interest rate decisions.
The market anticipates that the Central Bank will raise the Selic rate at its next meeting on September 17 and 18.
Strategic Stock Selections
Itaú BBA has outlined four main themes for choosing stocks that could benefit from the current market.
The first theme focuses on "bond proxies," which are stocks that act like bonds and offer high real returns. This category includes Equatorial (EQTL3), Eletrobras (ELET3), and Santos Brasil (STBP3).
The bank also recommends high-quality cyclical companies. These include the construction firm Direcional, Bradesco bank, and the B3 stock exchange.
For long-term growth, they suggest the outsourcing services group GPS (GGPS3) and the healthcare provider Rede D'Or (RDOR3).
Additionally, they find commodities like cellulose producer Suzano (SUZB3) and oil company PRIO (PRIO3) to be attractively valued.
With this strategic focus, Itaú BBA shows a confident yet careful approach towards investing in Brazil's growth and market potential.
This reflects an optimistic outlook for those looking at Brazilian markets amid global economic shifts.
Itaú BBA Forecasts Bright Future for Brazil's Stock Market with Strategic Insights
This marks a nearly 14% increase from the expected 145,000 points at the end of this year. Daniel Gewehr's team has prioritized Brazil over other Latin American markets.
The analysts see compelling valuations. The Earnings Yield Gap, which measures earnings against price adjusted for real interest rates, is now at 6.3%. This figure exceeds the historical average of 4.9%.
They expect Brazilian companies to grow their profits by about 12% from 2024 to 2025. Yet, international investors have been slow to return to Brazilian stocks.
Currently, foreign net flows are negative. Equity funds make up only 8.8% of all assets managed in the fund industry, below a recent high of nearly 10%.
The macroeconomic view remains slightly negative due to fiscal concerns and uncertainties about future interest rate decisions.
The market anticipates that the Central Bank will raise the Selic rate at its next meeting on September 17 and 18.
Strategic Stock Selections
Itaú BBA has outlined four main themes for choosing stocks that could benefit from the current market.
The first theme focuses on "bond proxies," which are stocks that act like bonds and offer high real returns. This category includes Equatorial (EQTL3), Eletrobras (ELET3), and Santos Brasil (STBP3).
The bank also recommends high-quality cyclical companies. These include the construction firm Direcional, Bradesco bank, and the B3 stock exchange.
For long-term growth, they suggest the outsourcing services group GPS (GGPS3) and the healthcare provider Rede D'Or (RDOR3).
Additionally, they find commodities like cellulose producer Suzano (SUZB3) and oil company PRIO (PRIO3) to be attractively valued.
With this strategic focus, Itaú BBA shows a confident yet careful approach towards investing in Brazil's growth and market potential.
This reflects an optimistic outlook for those looking at Brazilian markets amid global economic shifts.
Itaú BBA Forecasts Bright Future for Brazil's Stock Market with Strategic Insights
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Most popular stories
More Story
Comments
No comment