Initiation of Coverage Grupo Panvel: Regional Strength, Compelling upside: Initiating at Buy

Research evidence excerpt

Initiation of Coverage Grupo Panvel: Regional Strength, Compelling upside: Initiating at Buy

Global Research

23 July 2026ab by Powered Lab Evidence UBS YES

Initiation of Coverage

Grupo Panvel Equities

Regional Strength, Compelling upside: Brazil

Initiating at Buy Retailers, Drug-Based

12-month rating Buy

Prior : No Rating

12m price target R$17.00

Regional scale, strong execution and attractive upside

Prior :

We initiate coverage of PNVL with a Buy rating and a R$17/sh PT. We remain

constructive on Brazil’s pharmacy sector, supported by secular growth, Price (22 Jul 2026) R$11.73

consolidation opportunities and GLP-1 tailwinds following the Semaglutide patent RIC: PNVL3.SA BBG: PNVL3 BZ

cliff (see our sector report here). Panvel combines a leading regional position, a

Trading data and key metrics

differentiated product mix and accelerating expansion, which we believe should

support a revenue CAGR of 12% in 2025–30E, above the 11% CAGR currently implied 52-wk range R$16.34-9.07

by the stock price. The company holds ~13% market share in Southern Brazil, with Market cap. R$1.76b/US$0.35b

strong presence in Rio Grande do Sul and further room to expand in Paraná and Shares o/s 150m (COM)

Santa Catarina. Its execution track record is also solid, with avg. sales/store Free float 52%

growing at a 9% 2020-25 CAGR. Trading at 8.8x/7.4x 2026/27E PE, based on UBSe net Avg. daily volume ('000) 796

income of R$190m/R$226m, we believe PNVL offers an attractive risk/reward. Avg. daily value (m) R$9.3

Common s/h equity (12/26E) R$1.45b

A premium execution story in Brazil pharmacy retail P/BV (12/26E) 1.2x

Panvel is Brazil’s fifth-largest pharmacy chain by revenue and serves more than 30m Net debt to EBITDA (12/26E) 1.4x

customers annually through an integrated omnichannel platform.