Investment bank Jefferies has highlighted Brazilian retail group Assaí and education provider YDUQS as top stock picks in Latin America, citing resilient operations and strategic positioning despite macro headwinds.
Assaí leads the ranking, with Jefferies maintaining a buy recommendation despite a challenging consumer environment in Brazil. The company’s traffic levels have remained stable, supported by market share gains and a push into private-label products. The expansion into pharmacies is viewed as a low-risk growth avenue, while stronger cash generation and tax credit recovery are expected to accelerate debt reduction. Jefferies lowered its price target to R$ 12.00 from R$ 14.00.
YDUQS follows in second place, with Jefferies endorsing the preliminary merger talks with Afya as a transformational opportunity. The proposed deal would combine YDUQS’ premium higher education assets—including roughly 12,000 medical school slots, potentially rising to 15,000—with Afya’s geographically complementary medical programs in Brazil’s Southeast region. YDUQS trades at a 2026 P/E multiple of 6x, compared with Afya’s 8.1x, while average tuition fees at YDUQS stand at around R$ 12,500 versus Afya’s R$ 9,500.
Jefferies assigned a hold rating to Mexican airline Aeroméxico, which plans to seek shareholder approval for an annual share buyback program of up to US$ 100 million. The program’s execution will depend on market conditions, liquidity, and capital allocation priorities, with no specific shareholder meeting date disclosed.
