BTG Pactual updates September stock portfolio with Sabesp and Rede D’Or

BTG Pactual has updated its recommended stock portfolio for September, adjusting its selection of ten assets to navigate Brazil's fiscal and electoral uncertainties. The bank's strategy aims to balance long-duration cash flow assets with protection against currency volatility and exposure to oil.

Key changes to the portfolio include the addition of Sabesp (SBSP3) in place of Copasa (CSMG3), and Rede D’Or (RDOR3) replacing Totvs (TOTS3). The bank noted that while long-term interest rates and the stock market have priced in significant fiscal risk, the Brazilian real has not yet fully reflected this deterioration.

The updated portfolio is allocated as follows: 50% in basic services, infrastructure, and long-duration cash flow stocks (including Axia, Eneva, Sabesp, Motiva, and Rede D’Or); 10% in the financial sector (Itaú Unibanco); 20% in currency and oil theses (Embraer and Gerdau); and 5% in dividends and low-income construction. The remaining portion includes Petrobras, Cury, and others.