UPDATE: JP Morgan Initiates Ultrapar Participacoes at Neutral; Execution Already Priced In
JP Morgan initiated coverage on Ultrapar Participacoes (NYSE: UGP) with a Neutral rating and a $25.
JP Morgan commented, "In our view, Ultrapar has a very attractive profile: solid earnings growth and low risk resulting from a consistent operating strategy with a focus on organic expansion, a strong market presence in each of its businesses, and a disciplined usage of capital. However, we see UGP's positives priced in as the company trades at high multiples of 10.2x EV/EBITDA and 20.5x P/E that should limit further share upside and implies a premium to its global peer's average selling at 7.9x and 17.0x for 2013, respectively."
Ultrapar Participacoes closed at $20.83 on Thursday.
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