The role that gains from inflation and can jump 120%, according to Safra – Money Times

Ecorodovias ECOR3
Safra sees potential for a leap for Ecorodovias and recommends buying the paper (Image: Reproduction/Ecorodovias)

the action of Ecorodovias (ECOR3), one of the largest infrastructure companies in the country, could soar 120%, calculates the harvest in a report sent to customers.

However, the bank cut the company’s target price from R$20.30 to R$13.40 by 2023.

According to the report, the revision of estimates incorporated the company’s last quarter results, updated macroeconomic assumptions and new concessions recently added to its portfolio.

In addition, the bank considered the recovery observed in light vehicle traffic volumes in recent months, driven by the easing of the measures adopted to control the coronavirus pandemic. Covid-19.

Is it worth investing in Ecorodovias?

O harvest highlights that the improvement of recently acquired projects, the focus on the core business — despite still operating the Ecoporto, Ecorodovias has already announced its intention to sell and focus only on the concession of highways in the next auctions to be held — and the attractive return as positive points for the paper.

According to the report, the investment in Ecorodovias’ paper is supported by a high-quality portfolio, covering 10 toll roads that are located in high-density logistics and leisure corridors in different regions of Brazil.

In addition, highly predictable results, considering that its road contracts are indexed to the inflation (IPCA), characterize a good move in inflationary periods, says the harvest.

“The company is currently trading at an attractive valuation, with an estimated real Internal Rate of Return (IRR) of 13.7%, 774bps, above FX-indexed bonds. inflation 20 years,” says the report.

Disclaimer

O Money Times publishes informative articles of a journalistic nature. This publication does not constitute an investment recommendation.

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About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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