Weg S.A (WEGE3 BZ) Initiate at Buy: Electrifying growth ahead

研报英文原文证据摘录

Weg S.A (WEGE3 BZ) Initiate at Buy: Electrifying growth ahead

8 June 2026

Weg S.A (WEGE3 BZ) EquitiesMachinery

Initiate at Buy: Electrifying growth ahead Brazil

◆ We view Weg as a high-quality stock exposed to attractive INITIATE AT BUY

long-term growth themes; it generates 30%+ ROEs

TARGET PRICE (BRL) PREVIOUS TARGET (BRL)

◆ Wind and solar decline have weighed on earnings; we think

57.00 this is the bottom and see a 22% EPS CAGR in 2027-28e

◆ Initiate with a Buy rating and a TP of BRL57.00 SHARE PRICE (BRL) UPSIDE/DOWNSIDE

41.78 +36.4%

A unicorn in Brazil: Weg is the leading Brazilian electrical equipment producer, with (as of 04 Jun 2026)

dominant market positions in its local market, and a rapidly growing presence in the global MARKET DATA

market. It has a strong growth track record, with revenue and EPS growing at a 15% and Market cap (BRLm) 175,364 Free float 35%

Market cap (USDm) 34,622 BBG WEGE3 BZ

19% CAGR, respectively, over the last 10 years (2016-25) driven by its exposure to some 3m ADTV (USDm) 69 RIC WEGE3.SA

of the most attractive growth themes in global industrials – grid infrastructure, data

FINANCIALS AND RATIOS (BRL)

centers, renewables – as well as share gains and portfolio expansion in its more short- Year to 12/2025a 12/2026e 12/2027e 12/2028e

cycle exposed businesses. With strong growth and high 30%+ ROEs, Weg is among the HSBC EPS 1.52 1.54 1.92 2.31

HSBC EPS (prev) na na na na

highest quality stocks in Latin America, in our view, and stacks up well compared to its Change (%) na na na na

global electrical equipment peers. We initiate with an out-of-consensus Buy rating Consensus EPS 1.52 1.54 1.87 2.16

PE (x) 27.5 27.1 21.8 18.1

(Bloomberg consensus is Hold with 9 Holds, 6 Buys, 2 Reduces). Dividend yield (%) 1.7 1.8 2.0 2.4