Investment firm Jefferies has identified Brazilian retailer Assai and education company YDUQS as its top stock picks in Latin America, while assigning a Hold rating to Mexican airline Aeroméxico.
Jefferies ranked Assai as its top regional pick, citing resilience in Brazil’s consumer sector despite broader headwinds. The firm highlighted sustained store traffic, market share gains, and accelerated private-label penetration as key strengths. It also noted growth opportunities in pharmacies, leveraging Assai’s existing infrastructure. The retailer’s deleveraging is expected to accelerate due to stronger cash generation and tax-credit recoveries. Jefferies adjusted Assai’s price target to 12 reais from 14 reais.
YDUQS, ranked second, follows confirmation of early-stage merger talks with Afya. Jefferies views the potential deal as transformative, offering YDUQS greater scale and exposure to Afya’s medical education platform. The firm suggested YDUQS could secure more favorable valuation terms than its current public market valuation. Afya trades at an 8.1x 2026 price-to-earnings ratio, compared with YDUQS at 6x. The deal could add roughly 12,000 medical education seats for Afya, with potential for up to 15,000. Geographically, YDUQS’s Southeast-based courses command higher average tuition fees of around 12,500 reais, versus 9,500 reais for Afya.
Aeroméxico, assigned a Hold rating, announced plans to seek shareholder approval for an annual share repurchase program of up to $100 million. The buyback will depend on market conditions, liquidity, and capital allocation priorities. Jefferies interpreted the move as a sign of management confidence and commitment to shareholder returns.
