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Investing.com - JPMorgan has initiated coverage on Fras-le Mobility (BVMF:FRAS3) with an Overweight rating and a price target of R$29.00.
The investment bank expects Fras-le to deliver an EBITDA compound annual growth rate of 23% from 2024 to 2027, with high business resiliency due to over 90% of revenues coming from the aftermarket segment.
JPMorgan notes that Fras-le has significant room for consolidation in a fragmented aftermarket, where the company’s market share in some categories stands at approximately 22% compared to an aggregated average of 45%. The firm also highlights Fras-le’s M&A firepower of R$1.9 billion.
Fras-le is a Randoncorp subsidiary with Randoncorp holding approximately 51% stake. The company leads Brazil’s aftermarket for light vehicles with dominant market share exceeding 50% across several categories, primarily in friction components including brake discs, pistons, and linings.
The stock currently trades at an EV/EBITDA of 6.2x for 2026 estimates, representing a 20% discount to JPMorgan’s target multiple of 7.8x. In JPMorgan’s preference ranking for Latin American auto parts companies, Fras-le places second after POMO.
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