Brazil Educational Services and Healthcare Services: A postcard from Rio

Research evidence excerpt

Brazil Educational Services and Healthcare Services: A postcard from Rio

Brazil Educational Services and Healthcare Services

26 July 2026 Citi Research

Chile), Ifood/e-commerce growing relevance industry-wide, which in our view remain credible risks to the case. On balance,

the positioning is still mostly skewed net long (though far from crowded), with investors recently encouraged by controllers'

net buying in June and hopes for accelerating GLP-1 sales in July, potentially boosted by commercial combos.

Elsewhere, limited interest/attention for HYPE. While it's safe to say that the ~R$745mn Q2 EBITDA preview wasn't

particularly exciting, the expected good cash flow should be a solace, and the 3% drawdown this week sounded excessive to

most. Still, the lack of near-term catalysts and overall bearish expectations on GLP-1 upside probably keep the name under

the radar for most people, as ‘cheap alone’ probably isn't moving the stock anywhere.

The Education debate continue to hover on ‘what's the right multiple on a melting ice cube?’ While few investors were

scratching their heads to understand the timing and rationale of ANIM3's controversial FMU acquisition, the high-level

debate is whether high-teens/low-twenties FCF multiples look attractive enough given the lack of near-term catalysts and

unfadable cyclical/high-beta profile. The main catalyst for the space remains tied to a formal dividend policy, helping to

convert high FCF yields into Div. Yields, with VTRU currently emerging as the stronger candidate. On a tactical basis, COGN’s

Q2 looks optically better than YDUQS, though the high-PNLD/low bad debt mix may command an asterisk.

Companies Mentioned:

Anima Educação (ANIM3.SA; R$2.05; 3; 24 Jul 26; 18:00) | BRADSAUDE (SAUD3.SA; R$14.63; 1; 24 Jul 26; 18:00) | COGNA