Global markets see shifts in pharma, banking, and energy sectors

In Brazil, the pharmaceutical sector experienced volatility after Mercado Livre announced it would sell prescription medications through its own pharmacy and integrate other networks into its marketplace. This move caused shares of RD Saúde and Pague Menos to drop, though analysts from JPMorgan and XP suggest the market reaction may have been exaggerated given the logistical and regulatory hurdles ahead.

In the healthcare sector, UBS BB resumed coverage of Hapvida with a neutral recommendation and a target price of R$ 7.80. Analysts noted a potential R$ 30.8 billion tax asset related to 2022 goodwill, but emphasized that unlocking this value requires the company to demonstrate sufficient operational profit.

In Europe, financial and energy markets saw significant analyst activity. Exane BNP Paribas raised its target price for Banco Sabadell by 23% to 4.30 euros, citing improved profitability projections. HSBC increased its target for Repsol to 37 euros, supporting its year-to-date rally of over 100%. Meanwhile, in Portugal, both RBC Capital Markets and Santander raised their price targets for Galp Energia to 25 euros and 25.50 euros respectively, maintaining buy recommendations amid rising oil prices.