Brazil Toll Roads Defensive Cash Flows with Embedded Growth Optionalities; MOTV Top Pick

Research evidence excerpt

Brazil Toll Roads Defensive Cash Flows with Embedded Growth Optionalities; MOTV Top Pick

J P M O R G A N Latin America Equity Research

09 June 2026

Brazil Toll Roads

Defensive Cash Flows with Embedded Growth

Optionalities; MOTV Top Pick

We consider toll road operators among the most defensive names in our Brazil Latin American Transportation

ACTransportation coverage, offering compelling optionalities while currently trading Guilherme Mendes

at attractive returns — key reasons why we favor them in the near term amid (55-11) 4950-4105

macroeconomic and geopolitical uncertainties. In relative terms, MOTV3 is our guilherme.g.mendes@jpmorgan.com

top pick in Brazil — alongside RENT3 — underpinned by a combination of Julia Orsi

attractive valuation (12.0% real IRR), resilient earnings performance, and (55-11) 4950 3351

potentially accretive portfolio management optionalities, such as contract julia.orsi@jpmorgan.com

Banco J.P. Morgan S.A.

amendments and the partial sale of the Mobility platform. While we recently

upgraded ECOR3 to Overweight — more details here — and see superior upside

potential along with a more attractive valuation (15.2% real IRR), we acknowledge

its higher risk profile, driven by greater leverage and a more significant CapEx

balance as a percentage of market cap, which supports our relative preference for

MOTV. We take this opportunity to update our estimates following 1Q26 results

and to incorporate the Rotas Gerais project into our Ecorodovias model, resulting

in a 9% upward revision to our December 2026 Price Target, currently set at R

$12.50. Regarding Motiva, we are incorporating the divestment of the airport

division — removing it from our estimates and reflecting the expected cash