The Ibovespa advanced 3.6% in January, reaching 113,430.54 points, a positive performance mainly supported by the inflow of foreign capital, in the midst of a still asymmetric scenario in Europe and the US and with the recovery of China, according to market analysts.
It is in this scenario of reopening of the Chinese economy that Vale (VALE3) continues to be one of the main bets in the recommended portfolio of CNN in February as well as in January. The mining company’s share leads the indications of banks and brokerages in February, sharing the post with Itaú’s share (ITUB4).
Among the novelties in the February portfolio is the return of Petrobras (PETR4), which returns after part of the market’s fears about political interference have been left behind. Localiza and Banco do Brasil also enter the portfolio, while Weg, Equatorial and BB Seguridade leave the portfolio.
The composition of the portfolio included indications from XP, BTG Pactual, Santander, Banco do Brasil, Warren, Órama, Terra, ModalMais, Ativa, Guide and CM Capital.
See the complete list below:
Highlights of the month
See what analysts commented on the most recommended stocks for February:
Comment: Terra Investimentos
Iron ore in China should maintain a volatile scenario, while the Asian giant’s government continues to analyze stimulus policies that tend to increase demand for the product. Even so, steel demand is expected to return to historic levels. The risk factor remains associated with Covid-19 restrictions and signs of interference in Taiwan.
The company continues to deliver strong operating results despite the latest production revisions. Another long-term factor is the war between Russia and Ukraine, which should generate greater demand for metals to replace war weapons. Iron ore is a commodity that has been widely used in the reconstruction of countries affected by wars in the past.
In January, Itaú Unibanco shares fell marginally, accumulating three consecutive months of decline. In the month, the shares showed a return below the Ibovespa and in line with the IFNC (+2.4% and -0.2% in the same period, respectively). We attribute this performance to investors’ greater concern with the impacts on the balance sheets of financial institutions brought about by the judicial reorganization (RJ) of Americanas.
Despite the drop in recent months, we reiterate that Itaú continues to operate more efficiently among the large Brazilian banks, which puts it in a good position to navigate the challenging macroeconomic scenario that lies ahead. Furthermore, we see the following differentials: we see Itaú with a very healthy coverage ratio (and above the historical average) while keeping default rates under control; it has good exposure to fast-growing consumer credit lines; solid track record of M&As (mergers and acquisitions) and partnerships; and valuation attractive.
Source: CNN Brasil
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