Brazil was the standout in JPMorgan’s re-rating of Latin American equity markets as the firm raised its year-end price target for the Ibovespa index while lowering forecasts for the rest of the region.
Strategist Emy Shayo increased the 2019 target for the Brazilian benchmark to 108,000 from 105,900, implying about a 6% increase from current levels. The more optimistic projection is based on expectations that approval of social security reform will lead to more growth and lower risk. It comes as Brazil’s weaker-than-expected economic recovery has been leading to downward revisions to earnings estimates.
By Vinicius Andrade via Bloomberg