STXNEWS LATAM-Buy Qualicorp as valuations in Brazil insurers 'rich'-Goldman
Analysts at Goldman Sachs Group led by Carlos Macedo raised their 12-month price target for shares of insurance plan broker Qualicorp SA, which the analysts said does not face policy underwriting risk yet benefits from the secular growth trends related to healthcare in Brazil. In a report on Wednesday, Macedo and his team upped the target for Qualicorp to 22.90 reais from 22.30 reais previously.
In the case of Porto Seguro SA, Brazil's largest independent insurer, the 12-month target price was raised by 2.4 percent to 21 reais, while that for SulAmérica SA was cut by 1.3 percent to 14.50 reais. The valuations of both insurers is "rich" at this point, the analysts said. SulAmérica shares could also be affected by a potential mergers and acquisition transaction - for a few years, majority shareholder ING Bank NV has sought to sell its stake in the insurer, the report added.