The time has come to buy shares of Via Varejo, says Agora – Money Times

The time has come to buy the shares of Via retail (VVAR3), evaluates the Ágora Investimentos in a report sent to customers on Monday (27). Analysts calculated a target price of R $ 9, suggesting an appreciation potential of approximately 40%.

According to Richard Cathcart and Flavia Meireles, the company has proven to be more resilient than expected due to the growth of e-commerce.

“Given the company’s exposure to high-cost, low-margin discretionary items and short-term refinancing needs, it is understandable that the market has perceived above-average risk,” they explain.

However, they believe that Via Varejo will be able to face the crisis better than expected by the market due to the strong growth of electronic commerce.

“In addition, there are concrete indications that the recovery plan launched last year is beginning to bear fruit, so we consider the valuation (14 times the share price on estimated profit for 2021) to be attractive.