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See the stocks most recommended by banks and brokerages for the month of March

In February, the Ibovespa fell by 7.49%, partly due to the departure of foreigners in the wake of reassessments on the cycle of high interest rates in the United States, and also due to local concerns involving the relationship between the government and the Central Bank and inflation targets.

For this month, discussions are expected to expand again around the new fiscal rule, since there is expectation that the initial proposal of the new fiscal framework can be sent to Congress. This “would make the perspective on the Brazilian tax authorities clearer in the coming years”, points out the report by Terra Investimentos.

There is also an expectation that the government will present its compensatory proposals for the increase in the minimum wage and exemption from the IR range.

Based on this scenario, banks and brokerages consulted by CNN recommended the stocks with the greatest potential for the month of March. For the assembly of this portfolio, participated: Banco do Brasil, XP, BTG Pactual, Terra, Ativa, Warren, Órama and ModalMais.

Leading the recommendations is Vale, with six suggestions for investments. Then, with 5 recommendations appears Itaú Unibanco. See the list:

Highlights of the month

See what analysts commented on the most recommended stocks for March:

OK

Ticker: VOUCH3

Comment: BTG Pactual

The bank says that Vale remains the “preferred” name for exposure to the reopening of the Chinese economy. BTG expects economic activity to gradually recover as the Chinese government eases restrictions and the property market improves.

They also highlight the entry of a reference shareholder (Cosan) on the Board of Vale and see a potential monetization of the base metals division as a catalyst for creating value for long-term investors. “In our opinion, management remains highly disciplined in its capital allocation strategy.”

“Now we project average iron ore prices of US$ 125/t for 2023, with the company’s Ebitda estimated at US$ 25 billion for the year, around 20% above the consensus”, says BTG.

Itaú Unibanco

Ticker: ITUB4

Comment: XP

In February, Itaú Unibanco shares rose 1.4%, surpassing the Ibov and the IFNC (-6.7% and -5% in the same period, respectively).

XP attributes this appreciation to a robust result in 2022 (despite the impact of Americanas) and the disclosure of a healthy projection for 2023.

“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 is to come”, says the report.

The brokerage still observes the following differentials: Itaú with a very healthy coverage ratio (and above the historical average) while keeping default rates under control; it has good exposure to consumer credit lines, which are growing rapidly; a strong track record of M&As and partnerships; and attractive valuation. Therefore, there is a buy recommendation and target price of BRL 34/share for 2023.

Source: CNN Brasil

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