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.