Analysts at BTG Pactual Group said Brazilian exchange operator BM&FBovespa SA's strong operational figures for the month of December are likely to add "upside risk" to their quarterly estimates. Late on Monday, the company reported 7 billion reais ($3.45 billion) in average daily trading volumes for the equities Bovespa segment, or 115 percent above BTG Pactual's estimate of 6.7 billion reais. On the derivatives and commodities BM&F segment, average daily trading volumes also came above BTG Pactual's estimates, with revenue per contract data coming in line with forecasts.
Analysts Marcelo Henriques and Eduardo Rosman reiterated their call on shares of BM&FBovespa, which are currently BTG Pactual's top pick for Brazilian large non-bank financial stocks. BM&FBovespa is trading at a heavy 20 percent discount to global peers, mostly reflecting "the awful stock-related newsflow affecting the stock price for many months including state meddling in the foreign exchange market, competition risks and tax credit disputes," they said in a Tuesday note.
"We also believe some of the risks that have haunted the stock for a while are finally starting to dissipate, helping drive a continued stock re-rating," they added.