Jefferies has named Assai and YDUQS as its top stock picks in Latin America, citing resilient business models and strategic developments. The U.S. investment bank maintained Buy ratings on both names, though it adjusted Assai’s price target downward to 12 reais from 14 reais.
Assai retained the top spot in Jefferies’ rankings despite facing headwinds from consumer spending constraints and trade-down dynamics in Brazil. The retailer was highlighted for steady foot traffic, market share gains, expansion of private-label products, and the addition of pharmacies as a low-risk growth avenue. Stronger cash generation and tax-credit recoveries were also cited as supporting factors.
YDUQS ranked second, following confirmation of early-stage merger discussions with Afya. Jefferies described the potential tie-up as positive and transformative. Valuations reflected a premium for Afya, trading at 8.1 times its 2026 price-to-earnings ratio, compared with YDUQS at 6 times. YDUQS brings approximately 12,000 medicine seats to the deal, with potential to reach 15,000, alongside geographically complementary medical courses in Brazil’s Southeast region. Average ticket prices for YDUQS medical courses stand at around 12,500 reais, exceeding Afya’s 9,500 reais.
Jefferies also maintained a Hold rating on Aeroméxico, which announced plans to seek shareholder approval for a share repurchase program. The airline proposed a buyback of up to $100 million annually, subject to market conditions, liquidity, and capital allocation decisions. The date for the shareholder meeting has not yet been disclosed.
