Goldman Sachs Group analyst Carlos Macedo and his team cut the
price target on shares in clearinghouse Cetip SA Mercados
Organizados to 29.90 reais from 32.2 reais, to
reflect a reduction in earnings estimates for the coming two
years. Macedo maintained a "buy" recommendation.
The analysts said that early volumes for registration and
custody of securities fail to suggest market share losses at
Cetip, despite an expected increase in activity in that segment
by financial bourse BM&FBovespa SA. "Even though
volumes have been weaker, there is limited evidence of market
share loss as of yet," he wrote in a note.
At 11 times estimates earnings before interest, tax,
depreciation and amortization, the company's price-to-earnings
ratio is trading at a discount to peers in the region, "which
could tighten if reported volumes show resiliency," Macedo and
his team said.