the scenario of Santos Brazil (STBP3) is positive until 2022, stated the BTG Pactual in a report sent to customers and obtained by the Money Times this last Friday (24).
According to the bank, the president of the company mentioned that there is strong demand in the container sector and export. The CEO explained that this increase in demand for this segment is due to three factors.
The first is the ships bottled in the USA due to the record volume of cargo arriving in the region (explained by the expansion of online shopping). A second point is that Brazil faces vessel capacity restrictions.
“In addition to the lack of supply of containers, strong demand is bringing additional pressure to the market, as transit times at ports increase,” said Lucas Marquiori, Fernanda Recchia, Bruno Lima and Marcel Zambello when signing the BTG report .
Analysts commented that demand should normalize in 2023. “Our calculations are for 2 years from now because the new capacity of the container ships will be delivered worldwide in the next 24 months”, they explained.
Another point raised was that Santos Brasil sees room to increase the price charged for its services in 2022, given that the amount charged lags behind in comparison with the others ports of Brazil.
“Furthermore, the privatization of the Santos Port Authority, scheduled for next year, is a positive factor for the port industry, given that greater efficiency should emerge in many aspects on the regulatory front,” said Marquiori, Recchia, Lima and Zambello.
Finally, they listed some elements that should improve with privatization, such as port management contracts, the restructuring of rail and road access, long-term planning in infrastructure, the much-desired improvement in transparency, and better capital allocation.
Thus, specialists recommended purchase for Santos Brasil with a target price of R$ 11, an increase of 32.5% compared to the closing of this last Friday (24).