J.P. Morgan LatAm FTM 9 Jun 26 Brazilian Homebuilders; Brazil Toll Roads; InRetail; Telecom Argentina; Mexico Equity Strategy and More

Research evidence excerpt

J.P. Morgan LatAm FTM 9 Jun 26 Brazilian Homebuilders; Brazil Toll Roads; InRetail; Telecom Argentina; Mexico Equity Strategy and More

mates post 1Q26 results, increasing our estimates as the company has been able to deliver margin

gains earlier than anticipated and before the final antitrust remedies are defined. This encourages us to be bolder on the

synergy estimate, increasing terminal OpFCF margins to 23% from 19% previously, which is mostly in line with what Tim should

present this year in Brazil, although below our 26% terminal expectation for Tim. This takes our Dec 2026 price target up to

$19, from $16 previously, suggesting 42% potential upside. We reiterate our OW rating.

Mexico Equity Strategy (Adrian E Huerta)

2026 Mexico Opportunities Conference: Key Takeaways

We hosted panels with senior policymakers, business leaders, and Mexico thought-leaders as part of our 21 st annual Mexico

Opportunities Conference. Overall, we came away with a measured but constructive view: the long-term investment case

remains intact, anchored by Mexico’s geographic positioning, deep U.S. integration, a competitive manufacturing base, and an

increasingly collaborative public-private dynamic. That said, the near-term path remains clouded by uncertainty and is

conditioned on three moving pieces: i) USMCA execution, where a resolution is broadly expected but not until 2H27; ii)

persistent energy bottlenecks, and; iii) the Sheinbaum administration’s ability to translate Plan México into deployed capital,

with material execution only expected to begin in late 3Q. Encouragingly, speakers consistently flagged uncertainty rather than

bureaucracy as the binding constraint on investment, with the Sheinbaum administration increasingly removing administrative