Magazine Luiza shares surge following Shopee partnership

Magazine Luiza shares experienced a significant rally in October, rising 74% during the month. This surge follows a period of decline earlier in the year, bringing the stock's year-to-date gains to approximately 48%.

A key driver of this growth is a new partnership with Shopee, which launched on October 15, 2026. The collaboration allows Magazine Luiza to sell inventory from its own brands, including KaBuM!, through Shopee’s digital channel. This move aims to bolster the company's digital sales, which saw an 11.90% decrease in the second quarter of 2026.

Financial institutions have responded positively to these developments. Itaú BBA raised its 2027 price target for the company from R$ 10 to R$ 16, noting that lower interest rates could significantly boost earnings per share. Additionally, BTG Pactual issued a buy recommendation following the Shopee announcement, citing the potential for increased consumer reach through the platform.