LatAm Transport and Capital Goods "Daily Take-Off: EMBJ, RENT, TUPY, CPA..."

研报英文原文证据摘录

LatAm Transport and Capital Goods "Daily Take-Off: EMBJ, RENT, TUPY, CPA..."

andscape. The company's profitability is

sensitive to commodity prices (including copper and steel) and its ability to pass-through

cost increases to customers. In addition, WEG is exposed to political risks, especially

regarding tax and trade policy worldwide, as well as tax incentives in Brazil. Possible

upside risks include a recovery in global capex, investments in Brazil, increase in

infrastructure auctions, market share gains, new product launches, accretive M&A

announcements and profitability expansion. Lastly, headwinds caused by the

termination of the JCP (interest on equity) can add additional downside risk.

RENT is subject to local macroeconomic conditions and negative economic

developments: GDP growth, inflation and interest rates could have an adverse impact on

the company's results. In addition, company-specific risks include cost of growth and

proper execution of growth strategies.

Our 12-month price target for MYPK is derived from an EV/EBITDA multiple . The

automotive industry is very sensitive to abrupt changes in the domestic macroeconomic

environment, and any slowdown could weigh on the sector. Besides the macro effect, the

sector is also exposed to risks related to operating performance and the competitive

landscape. We outline tight credit, a lack of government incentives and labor cost

inflation as the main risks to the automotive industry in Brazil. The steel sector (and

other commodities) and underlying supply and demand are heavily influenced by trends

in global economic conditions and currency volatility, in addition to raw material price

fluctuations. Regulatory risk is also material, given continuously changing mining laws

and royalty regulations.