analysts of Inter Research It’s from BTG Pactual are optimistic about the performance of the OK 🇧🇷VOUCH3) in December. The prospect of recovery is directly linked to expectations about the Chinawhich eased some restrictions of the tough policy of Covid Zero implemented over the last few months and which slowed down the country’s economy.
At the same time, the Chinese government seems willing to inject more stimuli into the real estate sector, which is currently in crisis.
According to Inter, December will be marked by an external scenario with a more positive bias due to China and the Federal Reserve (Fed)with speeches by leaders indicating a possible easing of the pace of interest rate hikes in United States🇧🇷 On the other hand, the domestic political scenario will continue to weigh on local assets, at least during the first half of the month, assesses the institution.
Inter points out that the first steps towards easing restrictions in China helped boost the shares of companies highly exposed to the Chinese market, including Vale. The mining company’s shares accumulated a rise of more than 27% in November, in line with the advance of the iron orewhich went up by 30%, recovering part of the drop in the year.
“With the favorable news for commodity companies due to the process of reopening the Chinese economy, the shares of the steel and mining sectors were the highlight in November, with VALE3 and GGBR4 advancing 27.7% and 22.6%, respectively. ”, comments.
Inter has Vale’s shares in its portfolio dividends for December.
Why VALE3 now?
It’s not just Inter that have a recommendation in Vale. O BTG Pactual returned with the stock in the monthly stock portfolio.
Monitoring the fiscal risk in the face of the new government’s “aggressive proposal” to exclude expenditures that could reach up to R$ 198 billion from the ceiling, the institution begins December with a more cautious stance.
With the strategy of building a portfolio with assets less correlated with the Brazilian economy, BTG included Vale in the recommendations in order to increase exposure to the dollar and expose itself to the potential reopening of the Chinese economy.
“As we move into 2023, we expect economic activity to [chinesa] recover gradually as the government eases restrictions and helps moderate the real estate market correction,” he explains.
Bank analysts see the entry of a “reference shareholder” as positive (Cosan) on the mining company’s board and project value generation potential from the mining division base metals to long term.
BTG also expects that most of Vale’s medium-term strategic agenda will be focused on shareholder cash returns, with yield 10-11% expected for 2023, including share buybacks.
Source: Moneytimes
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