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WEG, Electric Equipment Manufacturer, Could Be A “Safe Harbor” For Investors In 2022

Published on 21/09/2021 at 03:20
Updated on 19/08/2022 at 05:06
weg investimentos credit suisse
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Report by Credit Suisse Shows That WEG Has Great Resilience and Capacity to Grow Even More in the Next 12 Months

Credit Suisse produced a very optimistic report regarding the shares of WEG (WEGE3) for the upcoming year. The report showed that WEG has the potential to grow double digits next year. Some characteristics of the company are viewed as key to an increase in investor interest.

Analysts Pedro Hajnal and Daniel Gasparete highlighted the company’s great resilience, noting that WEG is a renowned company with significant exposure in the international market. The electrical equipment manufacturer is pointed out as a safe port for the coming year.

We believe that the deterioration of the local macro and political environments has created the need for investors to seek high-quality name products with exposure to international markets,” the analysts said.

Report by Credit Suisse Shows That WEG Has Great Resilience and Capacity to Grow Even More in the Next 12 Months
WEG participated in the modernization of an oil refinery in Peru. Photo: WEG

The analysis showed that 55% of WEG’s revenue, more than half, comes from outside Brazil and, additionally, the correlation of the electrical equipment manufacturer’s shares with the Ibovespa is low.

Credit Suisse has an outperform recommendation, above average, for WEG’s shares for the next 12 months, with a target price of R$ 46. If the forecast is confirmed, it would represent a 17.3% increase compared to the price last Friday, which was R$ 39.19.

The company is experiencing a significant valuation of its shares. The company’s shares more than doubled last year, accumulating a 119% increase.

Credit Suisse also stated that the company’s investors are comfortable with WEG’s current market value: “If the results do not disappoint in the short term, which we do not believe will be the case, WEG should continue to be traded at high multiples,” the analysts said.

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Fabio Lucas Carvalho

Jornalista especializado em uma ampla variedade de temas, como carros, tecnologia, política, indústria naval, geopolítica, energia renovável e economia. Atuo desde 2015 com publicações de destaque em grandes portais de notícias. Minha formação em Gestão em Tecnologia da Informação pela Faculdade de Petrolina (Facape) agrega uma perspectiva técnica única às minhas análises e reportagens. Com mais de 10 mil artigos publicados em veículos de renome, busco sempre trazer informações detalhadas e percepções relevantes para o leitor.

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