INSUBCONTINENT EXCLUSIVE:
Morgan Stanley has spotlighted Brazilian shopping centers, recommending investors watch Iguatemi (IGTI11) and Allos (ALOS3) closely.Both
companies show big potential, with expectations for solid returns and growth.Iguatemi stands out due to its strong track record in strategic
They moved Allos from a neutral position to a buy recommendation.Morgan Stanley Backs Brazilian Malls: Iguatemi and Allos Shine
(Photo Internet reproduction)They increased the price target for Allos from R$25 to R$27, suggesting a 26.3% upside.This boost reflects the
Morgan Stanley expects Multiplan to rely more on asset monetization strategies in the short term.While maintaining a buy rating, they
reduced the price target for Multiplan from R$33 to R$30, reflecting a 30.2% potential upside.The gap between solid fundamentals and
significant valuation discounts concerns many investors.They worry that capital allocation decisions might not unlock shareholder
value.Morgan Stanley disagrees, seeing opportunities for balance sheet growth and proactive management teams.They also anticipate regulatory
changes in pension fund structures that could benefit the sector.Morgan Stanley Backs Brazilian Malls: Iguatemi and Allos ShineReal estate
investment funds (FIIs) will likely seek new gross leasable areas (GLAs) to anchor their offerings, driving sector changes.The investment
bank believes the next few years will be crucial for the sector.New funds raised by FIIs, companies exploring new growth structures, and
competing with FIIs.Instead, management teams focus on operational efficiencies and preparing for the next growth phase.This includes
brownfield opportunities or additional partnerships between FIIs for asset transactions, which could prove more beneficial than current cash
distributions.Investing in Brazilian shopping centers matters because it offers opportunities for significant returns and
growth.Understanding these market dynamics helps investors make informed decisions and potentially profit from these developments.
