Nucor earnings beat by $0.08, revenue fell short of estimates
On Thursday, UBS analysts downgraded TOTVS SA (TOTS3:BZ) stock from a Buy to a Neutral rating. Despite the downgrade, analysts raised the price target to R$49.00 from R$43.00. The decision follows a strong performance by the stock in 2025, with a year-to-date gain of 58%, outpacing the Ibov’s 14% and Nasdaq’s 1% increases.
The analysts highlighted that TOTVS reached a valuation of 29 times its estimated 2025 price-to-earnings ratio, or 26 times when considering adjusted net income. This valuation reflects the incorporation of a higher EBITDA from the company’s first-quarter results across all three business units.
The new price target of R$49.00 represents a 14% increase from the previous target, based on a 25 times 2026 estimated price-to-earnings multiple and 34 times the 2025 estimated net income. UBS analysts expect positive earnings momentum to persist but believe that most of the anticipated growth and margin expansion is already reflected in the current stock price.
In their commentary, the analysts noted limited upside potential at current levels, which led to the decision to downgrade the stock to Neutral from Buy.
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