JPMorgan has reaffirmed its overweight recommendation on Vibra (VBBR3) and Ultrapar (UGP), signaling continued confidence in Brazil's fuel distribution sector.
The bank's stance reflects a positive outlook on the industry's profitability, driven by margins that have exceeded market expectations.
This endorsement comes as investors scrutinize the resilience of Brazilian consumer staples amid broader economic headwinds.
The shares of both companies rose in response to the analyst note, reflecting immediate market approval of the bank's assessment.
JPMorgan's view underscores the structural strength of the fuel distribution model in Brazil, where pricing power and operational efficiency have allowed retailers to maintain healthy spreads despite volatile crude oil prices.
The upgrade reinforces the sector's appeal as a defensive play with growth potential.