Citi
May 29, 2026
The Point for Latin America
Daily UpdateEquitiesMacro Economic IndicatorsRates CreditFinancialsHealth Care
Citi provides a comprehensive update on Latin American markets, highlighting a neutral view on Colombian banks due to political risks and suggesting a tactical pair trade in the Brazilian healthcare sector.
Key Takeaways
- 1.Reiterated Neutral stance on Colombian banks as electoral uncertainty and tax burdens offset resilient 1Q26 fundamentals.
- 2.Introduced a healthcare pair trade in Brazil favoring Rede D'Or (RDOR3) over Fleury (FLRY3) due to an unwarranted valuation discount and divergent earnings growth outlooks.
- 3.USMCA negotiations have begun with a clear bias toward protectionism in the steel trade, likely keeping the 'delay thesis' for Gerdau active.
Table of Contents
- Top Call
- Company
- Industry
- Strategy & Economics
- Global
- Key Rating and Target Price Changes
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Authors
Brian Flores, CFAGustavo SchrodenLeandro Bastos, CFAGabriel Barra
Securities
RDOR3.SAFLRY3GGBBRAV3.SAPFDAVIGRP.CNAnthropic
Themes
Electoral and Fiscal Uncertainty in Andean MarketsTrade Protectionism and USMCAAI Supply Chain Bottlenecks
Regions
Latin AmericaBrazilColombiaMexico