Iochpe-Maxion (MYPK3.SA): Renewing Coverage: Turning More Constructive on 2H26 Trends; R$11/sh TP

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Iochpe-Maxion (MYPK3.SA): Renewing Coverage: Turning More Constructive on 2H26 Trends; R$11/sh TP

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21 Jul 2026 04:52:27 ET │ 16 pages

Iochpe-Maxion (MYPK3.SA)

Renewing Coverage: Turning More Constructive on 2H26 Trends;

R$11/sh TP

CITI'S TAKE Neutral / High Risk from Rating Suspended

Price (20 Jul 26 18:00) R$9.34 We are renewing our coverage on Iochpe-Maxion (MYPK) with a

Target price R$11.00 Neutral/High-Risk rating and R$11/sh TP. While 2Q26 is still likely to

reflect softer volumes YoY, largely due to a tougher comparison base and from -

weakness in Brazilian trucks, we see improving demand conditions across Expected share price return 17.8%

most other regions, particularly North America and India. In the US, fleet Expected dividend yield 2.6%

replacement needs and the upcoming EPA27 regulations appear to be Expected total return 20.3%

supporting Class 8 demand, while the company continues to outperform Market Cap R$1,436M

underlying markets in Europe through market share gains, especially in US$283M

commercial vehicles. Outlook for the Brazil market remains mixed, with

strong light vehicle production offsetting weak truck activity. Therefore,

we expect a more constructive view on operating trends for 2H26, with

margin recovery supported by higher volumes, fixed cost dilution and Andre Mazini, CFAAC

normalization of raw material pass-through dynamics. Separately, the +55-11-4009-2017

company completed a R$400m new debt issuance in June as part of its andre.mazini@citi.com

liability management strategy. Kiepher Kennedy

+55-11-4009-2641

US market — Conditions appear to be gradually improving across most of Iochpe- kiepher.kennedy@citi.com

Maxion’s key markets. North America remains a relative bright spot, driven by Piero Trotta