Localiza "1Q26 update: have Seminovos mg peaked?" (Neutral) Valerio

研报英文原文证据摘录

Localiza "1Q26 update: have Seminovos mg peaked?" (Neutral) Valerio

Global Research

12 May 2026ab

Localiza Equities

Brazil1Q26 update: have Seminovos mg peaked?

Transportation Services

12-month rating Neutral

Maintaining Neutral for Localiza

We maintain our Neutral view on Localiza in this update, as we believe the stock is 12m price target R$55.00

now fairly valued at current levels, despite continued operational resilience. At the

same time, depreciation remains the key risk, with growing structural pressure

Price (11 May 2026) R$47.02

from a second wave of Chinese OEM entry expected in 2026. In our view, this

dynamic represents a more structural headwind to residual values, tempering the RIC: RENT3.SA BBG: RENT3 BZ

medium-term risk–reward despite Localiza’s strong execution and balance sheet.

Trading data and key metrics

52-wk range R$52.83-32.70

1Q26 results highlights

Market cap. R$51.5b/US$10.5b

Localiza’s management maintained a constructive tone. The 1Q26 rental division

Shares o/s 1,096m (COM)

delivered solid margins on robust demand and resilient pricing, further supported

Free float 66%

by lower bad-debt provisions (including some reversals). A younger fleet is

beginning to reduce maintenance and preparation costs, and management sees Avg. daily volume ('000) 9,465

room for further tariff increases given healthy demand and strong competitive Avg. daily value (m) R$453.9

positioning. In Seminovos, strong volumes and operational improvements in pricing Common s/h equity (12/26E) R$27.7b

strategy, incentives, and store ramp-ups underpinned a positive outlook despite P/BV (12/26E) 1.9x

typical seasonal softness. The fleet renewal cycle is normalizing toward ~15m, Net debt to EBITDA (12/26E) 2.0x