Raia Drogasil (RADL3 BZ) Buy: A shot in the arm

研报英文原文证据摘录

Raia Drogasil (RADL3 BZ) Buy: A shot in the arm

24 June 2026

Equities

Specialty Retail Raia Drogasil (RADL3 BZ)

Buy: A shot in the arm Brazil

◆ Revisiting the Raia investment case, we see it as a business

MAINTAIN BUY

that offers solid defensive growth

TARGET PRICE (BRL) PREVIOUS TARGET (BRL)◆ Concerns around risks, such as GLP1 patent expiry and

competition from online operators, look overdone 28.00 28.00

◆ Retain Buy rating and TP of BRL28.00; we see plenty of SHARE PRICE (BRL) UPSIDE/DOWNSIDE

white-space growth, particularly in the long term 16.79 +66.8%

(as of 22 Jun 2026)

Defensive growth: Raia operates in a segment of the retail industry that should be MARKET DATA

Market cap (BRLm) 29,422 Free float 64%

relatively untouched by the pressure of high interest rates: its sector shows steady growth. Market cap (USDm) 5,721 BBG RADL3 BZ

Raia’s own performance is turbo-charged by its strong online business and capital 3m ADTV (USDm) 45 RIC RADL3.SA

strength that we think are helping it to gain share. In online, its store-led model is driving

FINANCIALS AND RATIOS (BRL)

rapid fulfilment. Unlike in some other businesses that have a large online arm, these sales Year to 12/2025a 12/2026e 12/2027e 12/2028e

seem to be neither cannibalising bricks and mortar sales nor causing any obvious damage HSBC EPS 0.71 0.99 1.37 1.59

HSBC EPS (prev) 0.71 0.99 1.37 1.59

to margins. We think there is plenty of space for Raia to grow in Brazil, with most regions Change (%) 0.0 0.0 0.0 0.0

comfortably behind the 34% market share that it has in Sao Paulo state. Consensus EPS 0.76 0.93 1.21 1.48

PE (x) 23.6 17.0 12.3 10.6

Dividend yield (%) 2.4 1.2 2.3 4.4

Risks may be overstated: The three issues that come up as risks for RD are: EV/EBITDA (x) 7.1 6.0 5.0 4.3