One stock is taking advantage of the collapse of the Americans (AMER3). While the shares of the company in judicial recovery skidded from R$ 12 to R$ 2 in less than a month, the Magazine Luiza (MGLU3) jumped more than 60% in January, leading the Ibovespa valuations in the period.
The market understood that the Luiza Trajano will benefit the most from the fall of Americanas.
Due to the strong recovery of the asset, the XP Investimentos it even updated Magazine Luiza’s thesis with a new target price of R$5, against R$4.50 previously. The classification, however, was maintained as “neutral”.
Action for February
Magazine Luiza is one of the novelties in the sectorial portfolio of Consumption, Retail and Services gives Órama Investimentos. The role went into composition for February along with Sugar Loaf (PCAR3), replacing Petz (PETZ3) and Carrefour Brazil (CRFB3).
In Órama’s assessment, Magazine Luiza should be one of the winners of the e-commerce Brazilian.
“We strongly believe in the strengths of brick-and-mortar stores to drive business digital,” he says.
Órama has a target price of BRL 5 for the retailer’s shares, which represents a potential appreciation of 12.8% over the last closing date.
In addition to Magazine Luiza and Pão de Açúcar, the brokerage firm recommends Ambev (ABEV3), Arezzo (ARZZ3) and Natura (NTCO3) for February.
In January, Órama’s sectoral portfolio rose 4.6%, compared to a 1.4% appreciation of the Consumption Index (Icon).
Source: Moneytimes
I am an author and journalist with a focus on market news. I have worked for a global news website for the past two years, writing articles on a range of topics relating to the stock market. My work has been published in international publications and I have delivered talks at both academic institutions and business conferences around the world.
