“pleasant surprise” with balance helps share to rise more than 6%

“pleasant surprise” with balance helps share to rise more than 6%
“pleasant surprise” with balance helps share to rise more than 6%
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Hapvida shares (HAPV3) led the Ibovespa’s rise in trading this Monday, with an appreciation of 6.49%, to R$ 3.94, also being among the most traded of the session.

On Thursday night (28), before the holiday, Hapvida (HAPV3) reported an adjusted net profit of R$330.5 million in the fourth quarter, an increase of 104.8% year-on-year. Adjusted EBITDA, in turn, grew 58.6%, to R$949.7 million.

If for some analysts the data came out strong as expected, for others the numbers represented “a pleasant surprise”.

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HAPV3: Balance analysis

The company’s efforts to recover gross margin through price adjustments were highlighted by Morgan Stanley. The data reinforces the investment thesis for the name. The performance demonstrated that Hapvida was on track to recover profits, according to the bank.

The analysis also highlighted that greater control over individual complaints caused the accident rate to drop. The metric remains susceptible to pressure on the health system as a whole, highlights Morgan, but Hapvida has integrated and verticalized.

In this sense, adds Morgan, the company remains a top pick, with an Overweight recommendation (exposure higher than the market average, similar to purchase) and a target price of R$6.00.

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Positive trends

XP analyzed the results as positive but “widely expected”. Among the highlights, the brokerage’s Research mentions the increase in revenue despite a 3% drop in the number of beneficiaries.

Compensation occurred through an increase in the average ticket by 11%. The numbers were also favored by the cancellation of loss-making contracts, seen positively by XP.

Analysts point out that costs show a virtuous trend, considering the drop in cash loss ratio present in the fourth quarter of 2023. Leverage also shows a tendency to reduce, even though it is at a high level. The recommendation for the name is to buy, with a target price of R$5.70.

Revenue short

Revenue growth fell short of Bradesco BBI’s expectations, although free cash flow (FCFE) was a positive highlight, at R$158 million. Ebitda was 11% above the bank’s estimates and the results were considered good.

Therefore, BBI estimated that the market reaction would be positive, as confirmed in comparison with the weak results of competitors.

The improvement in the accident rate should facilitate price increases and favor volume growth, according to the analysis. BBI recommends the name as Outperform (above average performance, similar to purchase), with a target price of R$5.00.

The accident rate, which improved by 260 basis points compared to the previous quarter, was the main positive highlight for Itaú BBA. The factor was mainly responsible for the expansion of the recurring EBITDA margin.

The analysis also highlighted the growth in operating cash flow, despite the pressures faced by the Brazilian healthcare sector. The company also reduced its net debt by R$159 million. BBA classifies the name as Outperform, with a target price of R$6.00.

The article is in Portuguese

Tags: pleasant surprise balance helps share rise

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