Morgan Stanley upgrades Brazil’s BB Seguridade rating after 25% slide

Grupo BMV plans to debut options on major US tech stocks like Amazon and Apple, traded locally in pesos. [https://invezz.com/wp-content/uploads/2025/05/eletrobras-brazil-invezz.png] Morgan Stanley upgraded BB Seguridade (BBSE3) from underweight to equal-weight on Friday, following a steep correction in recent months. The move comes after the insurer’s shares fell 25% from their peak in May and are down 10% year to date. At 10:15 a.m. in São Paulo, shares rose 1.31% to R$33.21. The bank also increased its target price, from R$33 to R$35. That indicates an 8% upside, which Morgan Stanley termed as restricted in comparison to peers such as Caixa Seguridade (CXSE3), which analysts see as having a 36% potential gain. RELATIVE UNDERPERFORMANCE TURNS VALUATION ATTRACTIVE According to the report, BB Seguridade’s stock has underperformed not only its sector rivals but also the overall market. In dollar terms, the shares have risen only 6% this year, trailing the MSCI Brazil Index’s 34% gain. The weakening has pushed values to historic lows. Based on downwardly revised projections, the BBSE3 now trades at 7.1 times estimated 2026 earnings. Morgan Stanley said that…