Citi cautious on Brazilian retail sector


Initiating cautious coverage on 8 Brazilian retail sector names (7 Holds, 1 Sell), Citigroup says multiples look expensive considering macroeconomic headwinds - among them rising inflation and interest rates coupled with a high level of consumer indebtedness.

"Slower demand presents top-line risks for Brazilian retailers exposed to the mid- and lower-income segments. Moreover, inflation could push operating expenses up while rising interest rates pressure financial costs for leveraged companies."

The central bank hiked the Selic for the 5th straight meeting last month and gave no indication it's going to break the string in November.Brazil ETFs: EWZ, BRF, BZF, BRXX, EWZS, BRAQ, BRAZ, BZQ, BRAF, UBR, BRZU, FBZ, BRZS, DBBR

From other sites
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs