LATIN AMERICA EQUITY RESEARCH: LATAM FIRST TO MARKET

Research evidence excerpt

LATIN AMERICA EQUITY RESEARCH: LATAM FIRST TO MARKET

Latin America Equity Research

LatAm First to Market 22 June 2026

Top Stories

| | Brazilian Education (Marcelo Santos, CFA)

Reducing Estimates on a More Flattish SELIC Curve; Upgrade Yduqs to OW, Downgrade Anima to N

We update our views on Brazilian education companies. We upgrade Yduqs to Overweight, from Neutral, on the back of strong

free cash flow generation and a discounted valuation, and we downgrade Anima to Neutral, from Overweight, removing its

price target, on a flatter SELIC curve (14% at YE27 vs 10% previously — Anima is the company most exposed to the SELIC)

and a tougher operational outlook for 2026. We also reduce our fair value estimates for the other companies under coverage

due to the SELIC curve.

| BTG (Yuri R Fernandes) (BPAC11 BZ, OW, PT R$66.00)

Upgrading to OW - Quality Franchise & Market Share Gains to Sustain Growth Through the Cycle

We upgrade BTG to Overweight on a simple view: the franchise looks increasingly “all weather” and a resilient growth

compounder. We see (1) continued market share gains and above-industry growth even in a softer macro backdrop, (2) a

resilient earnings mix, and (3) incremental upside from international expansion and operating leverage. Valuation adds to the

case: BTG now trades at 8.3x 2027E P/E for ~20% EPS CAGR (2025–27) and 2.3x 2026E P/BV for ~25-26% ROE. While not

as inexpensive as in Dec-24 (~1.7x P/BV / ~7x forward P/E), the business is also higher quality today (ROE >25% vs. ~22%

back then), and we view the quality + liquidity combo at this entry point as compelling. We establish our Dec-27 PT at R$66/unit

from R$61 Dec-26 before, implying ~35% upside, with estimates largely unchanged (still ~3% above consensus). BTG remains