Reuters logo
STXNEWS LATAM-Credit Suisse ups targets for Brazil capital goods makers
February 20, 2013 / 12:55 PM / in 5 years

STXNEWS LATAM-Credit Suisse ups targets for Brazil capital goods makers

Credit Suisse Group analysts led by Bruno Savaris raised on Wednesday the price targets for shares in five Brazilian producers of capital goods, citing a decline in domestic discount rates, the outlook for mergers and acquisitions as well as operational guidance for some of the companies in the segment. Savaris and his team upped the target for shares of Marcopolo SA to 14 reais from 11.5 reais; of Randon Participações to 11 reais from 10 reais previously; of Mahle Metal Leve SA to 30 reais from 25 reais; Autometal SA to 25 reais from a prior 20 reais, and; Weg SA to 30 reais from 20 reais.

Savaris also raised the recommendation on shares of Weg to “outperform,” citing “a great combination of resilient results, strong growth potential, with projected earnings growth of 15 percent to 20 percent over the next 3 years and improving return rates.”

In his opinion, “Weg should benefit from secular demand drivers, such as increasing usage of renewable energy sources, greater demand fueled by replacement/renewal needs due to ageing infrastructure, and the quest for greater energy efficiency and security.”

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below