1 MIN. DE LECTURA
Analysts at UBS Securities and Grupo BTG Pactual revised their price targets for shares in Brazilian card payment processor Cielo SA following the release of second-quarter results. In a client note on Thursday, UBS analysts led by Frederic de Mariz lowered the 12-month target for the stock to 52 reais from 54 reais previously, while keeping a "buy" recommendation after cutting annual estimates. "Even though second-quarter profit was a small beat, cost pressure disappointed high market expectations," de Mariz wrote.
Separately, BTG Pactual analysts led by Eduardo Rosman raised the target on Cielo to 50 reais from 44 reais with a "buy" recommendation. Rosman said higher expenses last quarter stemmed from investments, consultancy firms and the execution of projects aimed at helping Cielo retain its market leadership. "We see this as good news, and expect the conclusion of projects and operational expenses dilution to also be key earnings drivers from 2015 onwards," the analysts said.