H&E Major Pulse "Stock Movers: HAPV3 rally post Q1 release; LAUR: Furthe..."

Research evidence excerpt

H&E Major Pulse "Stock Movers: HAPV3 rally post Q1 release; LAUR: Furthe..."

Global Research

18 May 2026ab

H&E Major Pulse Equities

Latin AmericaStock Movers: HAPV3 rally post Q1 release;

LAUR: Further uncertainties on USMCA (-); Healthcare

YDUQS/COGN/ANIM: Student indebtedness at Leonardo Olmos,AnalystCFA

high levels (-) leonardo.olmos@ubs.com+55-11-9658 7533

Eduardo Resende

Associate Analyst

eduardo.resende@ubs.com

Stock Movers +55-11-2767 6015

HAPV3: Positive performance post Q1 release w/ relief in some fronts; we

remain cautious for now

HAPV3 was up +5% last week (peaking +16% intra-week following the release of Q1

results), outperforming all stocks under our coverage. Short interest declined

further by -185bps WoW to 14.5% of free float, signalling gradual normalization

after the stress observed in the stock lending market around the April 30 AGM, when

short interest had reached ~44% of free float. Overall, Q1 results were broadly

positive, providing an important data point on key sensitive areas, particularly

leverage. We have revised our estimates upward post-results (see our update here),

although we remain cautious, as Q1 MLR may have been supported by favourable

sector-wide dynamics (w/ softer utilization levels across the industry), while

competitive pressures have shown limited signs of easing so far. Although we

believe market expectations for EBITDA/net income remain somewhat

disanchored, we see the stock trading at 6x 2026E EV/EBITDA (vs. 5x LTM average

and 8x average over past 3 years). In our view, the scope for a meaningful re-rating

appears limited at this stage; however, clearer signs of execution in the commercial

turnaround could support estimate revisions ahead.

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