Latin American technology stocks identified by Morgan Stanley as resilient performers include Totvs, Globant and CI&T, reflecting a focus on artificial intelligence adoption, sustainable growth and operational efficiency amid rising financing costs in Brazil.
Totvs maintained an Overweight rating from Morgan Stanley despite a price target cut to 51 reais from 53 reais, as higher Brazilian interest rates weighed on valuation. The company reported 15% growth in recurring revenues and a 25% consolidated adjusted EBITDA margin. AI-enabling product sales now account for 19.4% of management recurring revenues, up 140 basis points year-to-date. Second-quarter 2026 results showed gross annual recurring revenue additions rose 28% year-over-year and adjusted EBITDA increased 22%, though earnings per share missed analyst estimates. Shares closed at 35.45 reais on August 31, up 3.02%.
Globant, trading at a roughly 30% discount to peers, is expected to reach at least $110 million in AI-native annual recurring revenue by year-end, a 38% increase over prior guidance. The company’s new business pipeline represents 18% of 2026 revenues, while free cash flow margin reached 11% over the last 12 months. Senior AI-focused roles now account for 34% of open positions. Second-quarter 2026 revenue slightly exceeded expectations, but adjusted earnings per share missed consensus and guidance for the third quarter and full year fell short of projections, prompting downgrades and price target reductions from multiple analysts.
CI&T remains positioned for industry-leading growth, with Morgan Stanley projecting a 9.0% year-over-year increase in constant currency revenue for 2027. Brazil accounts for approximately half of the company’s revenue, and its price target was maintained despite higher Brazilian interest rates and increased commercial spending. Second-quarter 2026 net revenue grew 21.9% organically, beating guidance, though adjusted diluted earnings per share trailed analyst forecasts.
