UBS BB favors Porto, upgrading Caixa Seguridade, downgrading BB Seguridade

infomoney.com.br (Portuguese) — April 8, 2025 at 05:01 PM UTC

UBS BB has upgraded its recommendation for Caixa Seguridade to "buy" with a target price of R$18, due to an attractive entry point after a recent offering. The bank notes Caixa Seguridade's faster growth pace compared to BB Seguridade. The price target for BB Seguridade was raised, but the recommendation was downgraded to "neutral". UBS BB prefers Porto among Brazilian insurers. It believes Caixa Seguridade deserves a premium over BB Seguridade due to its projected higher profit growth in 2025 and 2026. The bank also considers Caixa Seguridade's business model more resilient due to its long-term contract with Caixa Econômica Federal. Following a recent offering, Caixa Seguridade's liquidity has increased. UBS BB sees Caixa Seguridade trading at a 17% premium relative to BB Seguridade. This is based on the Price/Earnings ratio estimated for 2025, down from a 30% average last year.

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