Ultrapar upgraded to Overweight from Neutral at JPMorgan

JPMorgan upgraded Ultrapar (UGP) to Overweight from Neutral with a price target of R$24, down from R$28. After a few operational setbacks in the previous years, Ultrapar management went “back to basics” and improved fuel distribution margins, expanded Ultracargo’s footprint and strengthened Ultragaz positioning in the gas market, the analyst tells investors in a research note. The firm says that spite of this, Ultrapar shares underperformed significantly. The movement is overdone and current levels bring an attractive investment opportunity, contends JPMorgan.

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