Latin America Transportation: Marketing Presentation

Research evidence excerpt

Latin America Transportation: Marketing Presentation

LatAm Transportation Coverage Summary

Investment Summary

Latin America Transportation: On a local perspective, investor concerns remain centered on macroeconomic and political risks

in Brazil. With the October election potentially weighing on investor sentiment, and the prospect of a higher-for-longer interest

rate environment, we favor relatively more defensive names and companies underpinned by strong bottom-up fundamentals—

namely Motiva and Localiza. In Mexico, sluggish economic activity and lingering uncertainty around USMCA expectations

continue to dominate the spotlight; in this context, we favor Mexican airport operators.

Brazil Infrastructure: We favor our Brazil infrastructure coverage for its greater demand resilience, improved cash‑flow visibility,

and relatively lower exposure to short-term oil price volatility. We also welcome its solid regulatory framework. Within our

coverage, our preference order is Motiva (OW) > Ecorodovias (N) > Rumo (N).

Mexico Infrastructure: Mexican Airports benefit from a solid regulatory framework and strong earnings visibility; despite recent

concerns with traffic performance. Past traffic slowdowns (2008, 2020) have generally been temporary and short‑lived.

Preference order: GAP (OW) > ASUR (N) > OMA (UW).

Brazil Rentals: We like the sector given its supportive operating trends and a more stable seminovos/depreciation backdrop.

That said, sector performance is sensitive to long‑term rates, which supports our relative preference for Infrastructure. We

highlight Localiza’s competitive advantage. Preference order: Localiza (OW) > Vamos (OW) > Movida (N).

Latin America Airlines: The sector is still subject to oil price volatility.