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On Thursday, JPMorgan analyst Marcelo Motta upgraded MAHLE-Metal Leve SA (LEVE3:BZ) stock rating from Neutral to Overweight and increased the price target to R$39.00, up from R$38.00. The upgrade reflects a variety of positive factors identified by the analyst, including a significant potential upside and strong recent performance.
Motta’s analysis pointed to a 38% upside to the December 2025 price target for MAHLE-Metal Leve. This optimism is based on the company’s performance, which has exceeded expectations, particularly in terms of the returns from its recent acquisitions in the Thermal and Compressores divisions.
The analyst also highlighted the anticipated dividend yield for MAHLE-Metal Leve, projecting an attractive 10% to 15% for the years 2025 and 2026. This projected yield is among the highest in the sector, indicating a strong return potential for investors.
Another key factor contributing to the upgrade is the favorable outlook for light vehicles (LVs) in the Brazilian market compared to international markets. Motta suggests that the domestic market conditions are more supportive for MAHLE-Metal Leve’s business.
Finally, the analyst noted that the slowdown in the adoption of full electric vehicles (EVs) abroad could have a positive impact on MAHLE-Metal Leve’s valuation. This is because the company’s products are more aligned with traditional and hybrid vehicle markets, which may continue to see demand in the face of slower EV growth.
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