Sendas Distribuidora upgraded to Overweight from Neutral at JPMorgan

JPMorgan upgraded Sendas Distribuidora to Overweight from Neutral with a price target of $17, up from $15. Brazil food inflation has been recovering, the analyst tells investors in a research note. JPMorgan’s pricing tool shows that players have been passing prices to final consumers, tracking food CPI, albeit food inflation is likely to become more supportive to higher margin gains just into the second half of 2024, says the firm. It sees Assai printing better operating results on the back of store maturation and efficiency initiatives, with higher same-store-sales verses Atacadao in the short term.