Ultrapar initiated with an Outperform at Scotiabank

Scotiabank analyst Jorge Gabrich initiated coverage of Ultrapar (UGP) with an Outperform rating and R$26 price target The firm says its view is based on the company’s discounted multiple, solid balance sheets, and positively shifting market dynamics. Major brands like Vibra, Ultrapar, and Raizen could regain market share from smaller unbranded Latin America gas stations, as questionable practices receive more attention by authorities, the analyst tells investors in a research note.