Brazilian investment firms update small-cap stock recommendations

Major Brazilian financial institutions Terra Investimentos and BB Investimentos have updated their recommended small-cap portfolios for September 2026.

Terra Investimentos removed Rede D’Or (RDOR3) and Brava Energia (BRAV3) from its selection, replacing them with Sabesp (SBSP3) and Axia Energia (AXIA3). The firm cited Sabesp’s post-privatization transformation and efficiency gains as key drivers, while Axia Energia was included due to its solid results in the transmission sector and cash generation capacity.

BB Investimentos adjusted its portfolio by removing Mahle Metal Leve (LEVE3) and Marcopolo (POMO4), adding Brava Energia (BRAV3) and Lojas Renner (LREN3). BB Investimentos noted that Brava Energia is showing progress in operational efficiency and synergy capture following asset consolidation. Lojas Renner was selected for its operational quality and potential for profitability recovery in a more favorable consumption environment.