Leonardo Marcondes, an analyst from Bank of America Securities, maintained the Hold rating on Ultrapar Participacoes SA (UGP – Research Report). The associated price target is $3.50.
Leonardo Marcondes has given his Hold rating due to a combination of factors influencing Ultrapar Participacoes SA’s financial performance. The company’s fourth-quarter EBITDA was in line with expectations, showing a decrease compared to previous quarters. While Ultragaz and Ultracargo performed as anticipated, Ipiranga exceeded margin expectations, yet Hidrovias’ contribution fell short. The net income was significantly boosted by non-recurring tax credits, leading to a positive market reaction.
Despite the solid free cash flow to equity and a reduction in net debt, the overall financial outlook remains mixed. The improvement in Ultragaz margins and Ipiranga’s competitive positioning have already been recognized by the market, limiting further upside potential. Consequently, Marcondes maintains a Neutral stance, reflecting a balanced view of the company’s current strengths and challenges.
UGP’s price has also changed moderately for the past six months – from $4.280 to $2.940, which is a -31.31% drop .