Contrary to global markets, the Ibovespa continues the recovery movement of recent months, having ended the last week with an appreciation of 2.23%.
While central banks around the world adopt more aggressive postures with the interest rates of their respective countries to contain rising inflation, Brazil ended its cycle of increases in the Selic rate on Wednesday (21), paving the way for the resumption of the variable income.
according to BTG Pactualthere is an “easy way to surf” the improvement of feeling towards Brazil.
With a relevant weight on the Ibovespa, but without the risks of NPL (default credit rates), the B3 (B3SA3) is a good option for those who want to expose themselves to the Brazilian stock market, he says.
“It’s a good way to diversify risk away from the big Brazilian banks,” say analysts Eduardo Rosman, Thiago Paura, Ricardo Buchpiguel and Vitor Melo, in a report dated September 16, 2022.
The latest operating data released by the company indicates a positive trend for equity trading, with volumes up 32% in August from July.
According to BTG, the latest figures raise expectations about third-quarter results.
“As September is often driven by seasonality, we now expect the third quarter numbers to exceed our forecasts,” comment the analysis team.
According to BTG’s current (and conservative) projections, B3 should report net revenue of R$2.2 billion in the third quarter, more or less 5% below the market consensus.
“As the numbers are currently above ours, the actual results should be better than expected and more in line with the consensus”, reinforce the analysts.
BTG highlights that, even with the increase accumulated in the year, B3 is trading at attractive levels of 16 times P/E (price over earnings) for 2023.
Furthermore, the bank adds that if interest rates start to fall faster than expected in Brazil, there are additional upside risks for B3SA3, with earnings revisions and “multiple expansions of potential multiples”.
BTG has a buy recommendation and a target price of BRL 14 for the B3 share.
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