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Investing.com - UBS initiated coverage on Vulcabras SA (BVMF:VULC3) with a Buy rating and a price target of R$24.00, citing the Brazilian sportswear company’s expected ROIC expansion trajectory.
The research firm highlighted Vulcabras as a leading Brazilian sportswear company that owns the Olympikus brand and serves as the exclusive licensor of Mizuno and Under Armour in Brazil.
UBS noted that margins in 2025 were impacted by a approximately 20% headcount increase, which should wind down after the third quarter, setting the stage for margin recovery from 2026 onward—a trend the firm believes is underappreciated by the market.
Top-line growth is expected to remain supported by rising brand awareness, with UBS Evidence Lab’s brand survey showing consistent improvement over the years and a notable step-up in 2024.
The firm estimates a 10% five-year EPS CAGR for Vulcabras, an attractive 8.2% dividend yield for 2026, and sees the stock trading at reasonable price-to-earnings ratios of 9.3x, 8.2x, and 7.3x for 2025-2027.
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