Page turned? Luiza Magazine (MGLU3) Wins 3 Millions (CASH3) in Market Value After Balance Sheet – Money Times

a luisa magazine (MGLU3) rose by 17% in the current Friday session (12) After making a net loss 130 million Brazilian riyals in the second quarter of 2022.

This is the largest daily increase since March 2020. According to data from economics/TCThe company has gained 3.7 billion Brazilian reals in market capitalization, which is equivalent to three Melius (cash 3), which is currently valued at R$1.16 billion in the stock market.

Even with losses that exceeded expectations, the market went shopping. a Ibovespa Consumer actions are beginning to reap the rewards of a possible end to the Selic cycle.

From the point of view Goldman SachsThe company is close to an “inflection point,” with numbers within market expectations.

“Management was constructive in its comment about the return of cash generation in the second quarter to positive levels and expectations of improved sales in the second half,” he says.

Is she rock bottom for Louisa magazine?

For bank analysts, investors will begin to “lovingly” search for interest rate sensitive papers.

From the point of view revitalization of investmentsthe company’s current valuation is significantly discounted due to the high interest rate scenario and a significant screen price distortion.

The broker raised the recommendation from neutral to buy.

Already big investment It highlights R$1.3 billion of operating cash generated in the period, reflecting an improvement in working capital and a return to slightly healthier margins.

after balance amazingAnd the ElevenAnd the BTG Repeat purchase of MGLU3 with target prices of $8, $6, and $7, respectively.

Action points

Even if one part of the market is excited about newspapers, another part still sees the “dirt” coming from the bad macro.

to me Bradesco BBIthe result shows that the company continues to suffer from headwinds, with weak demand affecting GMV (total commodity value), and higher interest rates negatively affecting both GMV (demand) and earnings (financing costs).

“We have some concerns that high-value/credit-dependent categories may face headwinds in increased demand (results of allies (ALLD3), for example, weak demand for necessary categories Magaluand channel checks suggest manufacturers are facing hard times as well),” the analysts recall.

They assert that it is too early to achieve a sustainable impulse driven by the revival of growth and lower rates.

a Inter research He also has concerns about luisa magazine.

According to the bank, Magalu reported poor results, with the effects of a difficult macro scenario and disappointment in revenue, both in physical stores and online, especially in 1P (private equity).

The expansionary dynamics of foreign competitors (Ali BabaAnd the shopperAnd the Amazon) And the free marketCombined with inflation, credit and interest rate pressures makes the environment more competitive,” he points out.

to me InterThat could lead to an even bigger break-up of the margins, “because we’re still far from seeing a winner”.

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