Jefferies Upgrades Ultrapar Participações (UGP) to Market Perform, Raises PT

Ultrapar Participações S.A. (NYSE:UGP) is one of the High-Flying Penny Stocks to Buy. On March 13, Jefferies analyst Alejandro Anibal Demichelis upgraded the stock to Marketperform from Underperform and also raised the price target from $3.10 to $5.60.

The improved rating comes due to better near-term prospects for the company. The analyst noted that the Brazilian government recently announced a temporary 12% tax on crude oil exports, along with cuts to fuel import taxes and diesel subsidies to curb inflation from rising global oil prices amid the Iran war.

​The analyst noted that these measures ease pressure on fuel retailers such as Ultrapar Participações S.A. (NYSE:UGP) by stabilizing domestic prices and boosting margins. The firm has adopted a bullish sentiment on Brazilian fuel retailers overall and also upgraded UGP’s peer Vibra Energia to Buy from Hold. The firm noted that the upgrades reflect short-term benefits from the policy mix amid ongoing political risks.

​Ultrapar Participações S.A. (NYSE:UGP) is a Brazilian conglomerate primarily engaged in the distribution and retail of automotive fuels and related products.

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