Bank of America upgrades Ultrapar shares as crude oil gains and key risks ease ahead of second-quarter results.
Ultrapar Participações (UGP) climbed 4.1% in Wednesday trading after Bank of America upgraded the stock to Buy from Neutral. The firm raised its price target to $7.40 from $6.80, citing diminished overhangs and expectations for strong Q2 performance.
The upgrade follows a surge in crude oil prices, a key input for Ultrapar’s fuel distribution business. Prior to the move, the stock had underperformed peers amid macroeconomic uncertainty in Brazil.
Shares reacted positively to the revised outlook, reflecting investor confidence in the conglomerate’s near-term prospects.