O Ibovespa recovered part of the year’s losses in July and, along with it, the small caps. Last month, the index SMALL shot up 5.16%, while the Ibovespa rose 4.69%.
According to BB InvestimentosO SMALL signals that it may be leaving a congestion zone, at the end of July at 2,000 points.
“Economic indicators have given better signals. It is worth mentioning that the expectation of projections indicates that inflation (IPCA) tends to continue to cool down in August”, he states.
Murilo Breder, analyst at NuInvestrecalls that after a very bad month of June for small caps in general, it is still too early to classify July as a month of recovery.
“But we can say that part of the bleeding was stopped and that is enough for now”, he adds.
He states, however, that there is an expectation that this scenario will be reversed, and that when that happens there will be small caps that can double in value in this recovery.
The most recommended small cap
According to an exclusive survey by the Money Timeswhich reviewed portfolios of 13 analysts, Minerva (BEEF3) topped the nominations.
O Santanderwho recommended the action, recalls that he recently raised the company’s target price from R$17 to R$19 and elected the company as his favorite in the sector.
“The positive view of the company is based on its history, its operational moment and its attractive valuation. We see the company trading at 4.8x EV/EBITDA (2022E), a discount of approx. 10% in relation to the history of the last 5 years”, he calculates.
Furthermore, the bank’s team states that in the short term, the Minerva is expected to report solid second-quarter results, driven by high beef export prices and falling cattle prices in Brazil, in addition to strong results from operations in Paraguay.
“In the medium-long term, we remain optimistic about the recovery of the Brazilian cattle cycle and a greater supply of cattle from the second half of 2022, combined with limited global supply and heated demand from the China and from other countries”, he adds.
already the BTG Pactual says that the Minerva has a brilliant history.
“More than the improvements from the previous cycle, the cattle available for slaughter should increase, which means that we expect an even stronger positive cycle”, he says.
Analysts see resilient numbers for the company, with the company’s production and commercial experience Minerva stronger than ever, as well as delivering one of their strongest swings ever.
See the most recommended actions:
This survey took into account information on stock portfolios disclosed by 13 institutions. For August, 73 actions were indicated, totaling 121 recommendations. Participated in the survey Ágora Investimentos, BB Investimentos, BTG Pactual, Nu invest, Elite, Genial Investimentos, Guide Investimentos, Itaú BBA, Mirae Asset, Órama, Santander, Land Investments and Warren
🏆Money Times is Top 8 in Investments!🏆
If you rely on the portal’s news to always keep you informed about everything that happens in the investment world, vote and help Money Times to become the best investment site in Brazil. Click here and leave your vote!
O Money Times publishes informative articles of a journalistic nature. This publication does not constitute an investment recommendation.