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Long before the pandemic of coronavirus knock on doors, the Luiza Stores (MGLU3) already dominated the electronic commerce, which ended up being the only way to sell in full social isolation in the Brazil.
It turns out that the The balance of the retailer in the third quarter surprised the market on all fronts.
Hitchhiking in the e-commerce explosion caused by Covid-19, Magazine Luiza saw his adjusted net income reach R $ 215.9 million between July and September, a jump of 69.6% compared to the previous year.
Highlighting the 18% growth in sales of the Retail physical equipment Investments XP celebrated. “We expect a positive reaction from the market, given that the company delivered results very strong both physically and digitally ”.
Still, analyst Marco Nardini maintained a recommendation neutral for (MGLU3), with a target price of R $ 20 per action until the end of 2020. “We see the valuation as fair at current levels,” justifies the analyst.
I or BB Investimentos is more optimistic about the future evolution of Magalu shares. Regarding the financial leverage of the company, the administrator sees a net cash position of R $ 1.2 billion, compared to R $ 685 million in the third quarter of 2019.
With this, the company remains in a comfortable position to continue performing investments necessary to implement your strategic planning.
“Favored by the solidity of its sales ecosystem and a solid economic and financial performance, since the beginning of the year, the papers have been detached from the performance of Ibovespa (IBOV) and presented variations much higher than the index, as if the pandemic had just passed through the front door, without major interference in its business, ”says analyst Georgia Jorge.
Faced with this scenario, BB Investimentos revised the target price of (MGLU3) to R $ 34.70, maintaining the recommendation of purchase. Considering the share price on November 9 at R $ 26.45, there is a space for appreciation of 31.2%.
