Latin America Transportation: Stock Ranking: Changes at the Top, Toll-Roads Ahead of Car Rental

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Latin America Transportation: Stock Ranking: Changes at the Top, Toll-Roads Ahead of Car Rental

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03 Aug 2026 18:00:00 ET │ 24 pages

Latin America Transportation

Stock Ranking: Changes at the Top, Toll-Roads Ahead of Car Rental

CITI'S TAKE

Filipe Nielsen AC

In our stock ranking we maintain Airlines at the top despite fuel volatility, +55-11-4009-5213

but changes from earlier this month placed LATAM as our top pick in the filipe.nielsen@citi.com

sector. Toll-roads earned higher spots, we placed Ecorodovias as our top-

pick on the Brazilian side of the coverage, while car rental stocks still look

cheap but less promising from a risk/reward perspective. On the bottom half

of the leaderboard, rail/river logistics remain our least preferred stocks.

Moreover, as the 2Q earnings season evolves, we highlight key topics to

watch over the coming weeks. The full table of preferences is shown in

Figure 1. More valuation charts and comps are in the note.

Ranking changes — In mid-July we moved LATAM to the pole position ahead of

Copa, given the latter’s outperformance lately. Aeromexico remains third for its

cheap valuation. We are also moving Ecorodovias and Motiva to 4th and 5th positions

respectively (ahead of Localiza in 6th). Toll-roads’ 2Q26 results (see for Motiva and

Ecorodovias) showed on-track capex execution and good operational performance

despite higher costs, while we view both Motiva and Ecorodovias less exposed to

interest rates than other companies. Ecorodovias’ inexpensive valuation (see Figure

4) seems like an overreaction to the company’s risks, while Motiva offers interesting

positive triggers and trades at attractive IRRs. Meanwhile, our incremental caution

with the car market and higher exposure to macro/interest rates uncertainty justifies