Lojas Renner "Well Tailored: Estimates Refresh Post Management Meeting" (Buy)

研报英文原文证据摘录

Lojas Renner "Well Tailored: Estimates Refresh Post Management Meeting" (Buy)

Global Research

7 June 2026ab

Lojas Renner Equities

BrazilWell Tailored: Estimates Refresh Post

Management Meeting Retailers, Apparel

12-month rating Buy

12m price target R$18.00UBS adj. net income of R$1.55bn/R$1.7bn, Buy rating, R$18/share price target

Prior : R$18.50

We refresh our estimates following 1Q26 results and a recent meeting with LREN’s

top management in Porto Alegre. We maintain our Buy rating with a price target of Price (05 Jun 2026) R$14.89

R$18/share, as we continue to see drivers for sustained margin expansion and RIC: LREN3.SA BBG: LREN3 BZ

strong FCF generation. In addition, we view LREN’s solid R$1.5bn net cash position

in 1Q26 as a meaningful buffer in a higher-for-longer interest rate environment. We Trading data and key metrics

highlight management’s confidence around pricing competitiveness, while more 52-wk range R$19.68-12.98

normalized weather conditions should support a healthier top-line trajectory, Market cap. R$14.7b/US$2.84b

particularly into 2H26, when the company benefits from easier comparison bases. Shares o/s 988m (COM)

For 2Q26, we model SSS growth of 4%. Meanwhile, with both the market and our Free float 100%

estimates remaining more conservative, management’s +9–13% top-line guidance Avg. daily volume ('000) 16,890

for 2026–30 (UBSe +8% in 2026) represents potential upside optionality. We also see Avg. daily value (m) R$249.1

continued improvements in inventory efficiency and gross margin expansion as key Common s/h equity (12/26E) R$11.1b

drivers of FCF ahead, supporting an estimated 2026 6% dvd. Yield, which adds to a P/BV (12/26E) 1.3x

previously announced 7.6% 18-month share buyback. Overall, we estimate LREN net Net debt to EBITDA (12/26E) 0.3x