Even with the 40% drop in the last month, the shares of Meluze (CASH3) remain attractive, points out the BTG in a report sent to customers and obtained by the Money Times.
The bank raised the company’s target price from R$40 to R$60, which implies an increase of 48.5%, with a purchase recommendation.
“CASH3 dropped 40% in August, which at first glance might indicate something bad. But everything looks fine. Meliuz went public at R$ 10 per share in November last year, and the shares are already up nearly 170% in the year to date”, argue analysts Eduardo Rosman, Ricardo Buchpiguel and Thiago Paura.
For the trio, the transition from a pure cashback company to a more complete ecosystem is unlikely to be a direct line to success.
“But we still believe that it can be transformative and the company is on the right path”, he adds.
In an interview with Money Times, the Investor Relations Director of Méliuz, Luciano Valle made it clear that the company’s intention is not to be “just” a cashback company or a bank.
“Labeling us as a cashback company is very simple. Putting us as a bank is also very simple. Méliuz wants to go beyond cashback, beyond banking,” he said. “We really want to promote the aspirational of our users within our platform in the most fluid and simple way possible.”
Experts point out that even with the impressive rate in the number of active customers, the marketplace’s gross value of merchandise (GMV) fell short of consensus, growing “only” 8%.
“Meliuz says that he is getting to know these new customers and signaling that many are buying lower value items, which also impacted the take rate”, they complete.
According to them, the company has been expanding its operations through mergers and acquisitions and hiring great employees, considering that it even reached the IPO (Public Offering of Shares, in Portuguese) with “only” R$ 30 million in investments and a small team of 140 professionals.
“The team is bright, young and passionate, and we believe, with a large customer base ready to get more involved”, they point out.
stumbles but doesn’t fall
The results for the second quarter of the year represented a detour on the path for the growth of Meluze (CASH3), in the opinion of XP Investments. For the broker, the company presented weak operating numbers.
Net revenue, considering the integration of recently acquired companies (Picodi, Promobit and Melhor Plano), totaled R$ 54.5 million, more than double the second quarter of 2020, but still below analysts’ estimates. XP projected R$ 56 million for this line, excluding acquisitions.
Of the total revenue, R$46.1 million refers to the mall and R$8.4 million to financial services.
Despite the results having fallen short of expectations, XP maintained its buy recommendation for the stock, with a target price of R$48.
“We reiterate that the company still has solid foundations for long-term success,” defended the broker, who sees the company as the best vehicle to capture aggressive competition in the e-commerce and financial sectors.
THE Now Investments adopted a more neutral tone for the results. The analytics team welcomed the revenue numbers and estimates that this line will gain more steam in the future.
“We believe that revenues should continue to gain even more momentum as the company increases its financial services revenues (with AcessoBank) and its own marketplace revenues with the acceleration and engagement of users in local and Picodi (international) operations” , commented Luiza Mussi, author of the report published on Monday and obtained by Money Times.
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