February 6, 2023

Why is Luiza (MGLU3) down 7% and Via (VIIA3) up 1% this Wednesday? – Money Times

Shares of Magazine Luiza melted down 7.45%, trading at R$2.61 each (Photo: Shutterstock)

Actions Louisa Magazine 🇧🇷MGLU3) was the highlight of the decline in ibovespa This Wednesday (21). The performance of the retailer Contrasting with the recovery of the index, which faced a volatile session, but closed in a positive position.

Magazine Luiza stock melted down 7.45%, trading at R$2.61 per share.

Today’s performance is nothing more than a profit-taking move, explains Leandro Petrokas, Research Director and Partner at Quantzed. The specialist points out that the retail sector in E-Commerce It rose in the last trading sessions.

It should be noted that the shares rose in the previous two trading sessions by 28% from minimum to maximum. Therefore, today we have a profit-taking movement, even with lower interest rates,” he says.

If Magazine Luiza’s decline was a correction, it would explain the 1.63% increase in Through 🇧🇷VIIA3) which also jumped in recent sessions, this Wednesday?

Petrokas believes that the market favors Via because it is seen as a cheaper option than Magazine Luiza. The analyst notes that Magalu is trading at 1.7 times its book value, while Via is trading at 0.71 times.

“VIA has a market cap equal to 13% of 12 months’ revenue, while Magazine Luiza is worth 54% of revenue. Plus, VIA has a lot of tax breaks to make up for it,” he adds.

Also, in a document sent to the market yesterday, VIA reported that the world’s largest asset manager, Black stone🇧🇷 Increase its stake in the company to 5.054%🇧🇷

in parallel, Santander downgraded Luisa Magazine’s recommendation to “neutral”, quoting a Evaluation “Too demanding” at the moment. The bank also introduced a new target rate of R$2.80 at the end of 2023.

to via f The Americans 🇧🇷Amer 3), Santander maintains a “Neutral” recommendation, with target prices at R$2.20 and R$9.10 at the end of 2023, respectively.