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    10 stocks to invest in July, according to BTG

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    Sabesp is “too cheap to ignore”, according to BTG. (Image: Facebook/Sabesp)

    O BTG Pactual included the actions of WEG (WEGE3), locate (RENT3) and Renner (LREN3) among the recommendations for July.

    The changes take into account the liquidity of the papers, the attractive price and the “strong history of execution” of the companies, says the bank in a report signed by Carlos Sequeira and Osni Carfi.

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    For BTG, the recent liquidation of WEG, which has accumulated a drop of more than 15% this year, is a “good gateway to a business with strong fundamentals, defensive characteristics and secular trends”.

    Localiza, according to BTG, should benefit from the merger with Unidas. “A more ‘normalized’ automobile market can create good opportunities to expand and renew its fleet under better conditions”, he comments.

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    The bank’s analysts maintain retail exposure with Renner (LREN3). “Premium operating performance and execution should benefit from consumer trade-down and market share gains over smaller peers,” he says.

    The stock trades at a multiple of 14 times the 2023 P/E price.

    WARNING: BB Seguridade and 4 other cheap stocks can ‘explode’ dividends in your pocket. Access now the free report with their name clicking here


    BTG says it added Petrobras (PETR4) and know (SBSP3) that are, in the bank’s assessment, impacted by the political environment. For analysts at the institution, the two stocks are too “cheap to be ignored”.

    “Petrobras is a complex case as its pricing policy is at the center of intense political debate, but a highly attractive valuation (2x 2022E EV/Ebitda) already largely prices political risks, while strong dividend payouts provide extra support” .

    Sabesp, on the other hand, traded at 0.64x EV/RAB (10x P/E), has an optimistic outlook due to the possibility of privatization in a possible new management, says BTG.

    What comes out of the wallet

    BTG reduced exposure to banks with the withdrawal of Itaú Unibanco (ITUB4), but maintaining Banco do Brasil (BBSA4) – which, according to the institution, has a solid credit portfolio and is “very cheap”.

    The bank withdrew Arezzo (ARZZ3) and multiplan (MULT3).

    Still excluded from the portfolio root (ROOT4), due to the reduction of the federal tax on fuels – which makes ethanol less competitive in relation to gasoline, says BTG.

    BTG also withdrew Locaweb (LWSA3) to favor more liquid stocks, although it maintains the role in the portfolio of small caps.

    “We maintain our exposure to the light commodities and livestock businesses, where Brazil has an advantage. SLC Agrícola (SLCE3) is our favorite light commodity player, while Minerva (BEEF3) is the one that gains the most from the reduction of cattle costs in Brazil”.

    BTG also kept OK (VALE3) in the portfolio, in view of strong dividends and the share buyback program.

    The bank is still Totvs (TOTS3), because of “good growth, profitable business, inflation protection and attractive valuation”.

    WARNING: BB Seguridade and 4 other cheap stocks can ‘explode’ dividends in your pocket. Access now the free report with their name clicking here

    See BTG’s recommendations for July

    Company ticker Proportion
    OK VALE3 15%
    Petrobras PETR4 10%
    WEG WEGE3 10%
    Bank of Brazil BBSA3 10%
    locate RENT3 10%
    know SBSP3 10%
    Renner stores LREN3 10%
    Totvs TOTS3 10%
    Agricultural SLC SLCE3 10%
    Minerva BEEF3 5%


    O Money Times publishes articles of a journalistic nature, which aim at the democratization of information. Our publications must be understood as announcing and disseminating bulletins, and not as an investment recommendation.

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    Source: Moneytimes

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