JPMorgan thinks Assaí Atacadista, one of the largest retailers in Brazil, is a strong investment play as the company begins to reflect better operating trends.
Analyst Joseph Giordano upgraded Assaí, a Brazilian self-service wholesale company with almost 300 stores that trades on the New York Stock Exchange, to overweight from neutral.
JPMorgan also raised its price target by $2.50 to $17.50, implying upside of almost 30% over the next year.
"We revisit our views on the Brazilian cash & carry space ahead of 1Q24 results," Giordano wrote in a note Tuesday.
A more flexible balance sheet would enable Assaí to take advantage of the fact that major competitors are not opening new stores, he said.
Persons:
Assaí Atacadista, Joseph Giordano, Giordano, Atacadão, Assaí
Organizations:
JPMorgan, New York Stock Exchange
Locations:
Brazil, Brazilian, U.S