BB Seguridade (BBSE3) is the only stock with highs in 2022: what to expect for the asset?

Amid this recent volatility in the Brazilian market, BB Seguridade (BBSE3) reached the highest historical bid and is the only stock on the Brazilian stock exchange with an average daily volume of more than R$1 million to reach the final stretch of 2022 at extreme levels, according to information from TradeMap.

The asset closed the session this Thursday (22nd) up 1.58%, at R$33.99, posting a gain of 76% on the year.

“On the market we still have two more cards with a maximum in 2022, but they are very thin papers, as in the case of Banestes (bees 4) and the tropical para ([ativo=EQPA5]), notes Einar Rivero, the platform’s chief commercial officer.

It should be noted that Bradesco BBI on Thursday revised its recommendations for the non-banking financial sector and raised the target price for BBSE3 stock from R$31 to R$35, but maintained a Neutral recommendation. Despite the recommendation, he highlighted the company’s preference in the sector.

“Amidst an uncertain environment, we continue to like players in the capital market (trans [ativo=B3]), although the lack of momentum/short-term catalysts prevents us from being more bullish on the stock. However, we prefer to focus our industry exposure (if any) on the insurance industry through BB Seguridade. While BBSE3 may not have much room for reclassification, its earnings momentum should continue to deliver a good carry and defensive provision (albeit with much less upside risk) in 2023.”

JPMorgan also indicates among the preferences of the non-bank financial sector BB Seguridade, as well as B3, Cielo (CIEL3) and port (PSSA3🇧🇷

At a recent conference call with investors, analysts highlighted key points of what to expect for the company in 2023, with earnings likely to grow in double digits, while premium written likely to slow.

“Even if La Niña continues in the same magnitude this year, the agricultural loss rate will be about 30% lower because of the repricing that has already been implemented. distribute profits He indicated that (dividends in relation to profits) may approach about 100% in the second half of 2022 and remain at about 90% in the coming years. Incidentally, the company He began to be seen as one of the favourites Within the dividend strategy, according to the analysts he consulted Infomoney.

In this week’s report, Santander highlighted BB Seguridade as the best way to invest in the sector and maintained its Buy recommendation, raising its price target from R$34 to R$38. The company should benefit from strong performance across all sectors in the coming year, according to analysts, who highlight loss ratio control, premium increases and reserves in pension plans. Forecasts point to a 21% increase in net income year-on-year to R$7.115 billion.

According to Refinitiv’s survey with Homes Analysis, out of 14 homes covering the asset, 10 recommend purchase and 4 recommend maintenance, with an average target price of R$34.36.

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