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Tupy SA（TUPY3.US）Headline
2024-08-14 03:21

Investment Rating - The report assigns a 12-month rating of Neutral to Tupy SA with a price target of R25.50[3][16].CoreInsights−TupySA′srevenuehasbeennegativelyimpactedbylowervolumes,particularlyintheoff−roadsegmentabroad,butthecompanyhasdemonstratedeffectivecostcontrol,leadingtoanadjustedEBITDAincreaseof1425.50 [3][16]. Core Insights - Tupy SA's revenue has been negatively impacted by lower volumes, particularly in the off-road segment abroad, but the company has demonstrated effective cost control, leading to an adjusted EBITDA increase of 14% compared to expectations and a margin expansion of 3 percentage points year-over-year [2][3]. - The significant decline in net income, which fell by 67% against expectations, is attributed to foreign exchange hedge mark-to-market expenses [2][3]. Financial Highlights - Revenue for Tupy SA is projected to be R11.291 billion for 2024, a slight decrease from R11.368billionin2023,withexpectedgrowthtoR11.368 billion in 2023, with expected growth to R12.518 billion in 2025 and R13.835billionin2026[5].−Thecompany′sEBITmarginisexpectedtobe7.813.835 billion in 2026 [5]. - The company's EBIT margin is expected to be 7.8% in 2024, improving to 8.7% in 2025 and 9.3% in 2026 [5]. - The net debt to EBITDA ratio is projected to be 1.2x for 2024, indicating a manageable level of debt relative to earnings [5]. Market Metrics - Tupy SA's market capitalization is approximately R3.72 billion (US0.68billion),withanaveragedailytradingvolumeof573,000shares[4].−ThestockpriceasofAugust13,2024,isR0.68 billion), with an average daily trading volume of 573,000 shares [4]. - The stock price as of August 13, 2024, is R25.79, slightly above the price target of R$25.50 [3][16]. Forecast Returns - The forecast price appreciation for Tupy SA is -1.1%, with a forecast dividend yield of 3.6%, leading to an overall forecast stock return of 2.5% [6].