A 12.5% ​​drop in the share opens a buying window for investors? – Money Times

The actions of petz (PETZ3) had the Ibovespa’s biggest drop (IBOV) this Friday (6). The shares tumbled 12.52% and ended the trading session at R$ 13.27.

For Lívia Rodrigues, Research Analyst at Activate Investmentstoday’s drop comes after the company released its first quarter results the day before.

The company reported adjusted net income of R$ 21.1 million in the first quarter of 2022, an increase of 57.7% compared to the same period in 2021. According to Rodrigues, the adjusted Ebitda of R$ 52 million came below expectations of the market.

“The number was much lower than expected in terms of profitability, but even so, it does not justify today’s fall, so I continue with a positive vision for the company”, he explains.

Therefore, she states that she recommends buying the asset in the long term with a target price of BRL 24.90. “The company still has some synergies to add with zeedog, in addition to having a resilient demand and great potential for growth”, he comments.

However, the analyst calls for great care for the investor who wants to enter the asset, as factors such as the high of grains can disrupt the performance of the role, given that animal feed needs grains for manufacturing.

“In the short term, anything can happen, so our buy recommendation is for the long term”, he concludes.

While Petz collapses, Lojas Renner jumps

The papers of Renner stores (LRNE3) had the second biggest rise of the Ibovespa. The shares rose 5.99% and closed the day at R$24.24.

According to Rodrigues, the rise occurs after the company released the result the day before and reported a net profit of R$ 191.6 million in the first quarter of 2022, a reversal of last year’s loss.

For Lívia, the result was very positive, even more so in relation to the gross margin, which was two percentage points above expectations.

“Shares are discounted, so I recommend buying for the long term with a target price of R$ 37.30”, concludes the specialist.

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The Money Times publishes articles of a journalistic nature, which aim at the democratization of information. Our publications must be understood as announcing and disseminating bulletins, and not as an investment recommendation.

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