By Jeffrey T. Lewis
SÃO PAULO--B3 SA-Brasil, Bolsa, Balcão's shares were 4.3% lower after analysts downgraded the Brazilian stock market operator.
Shares reached 12.40 reais, the equivalent of $2.51, and were up 5% from the end of last year through Friday's close. Brazil's benchmark Ibovespa stocks index was down 0.2% in mid-morning trading.
BTG Pactual analysts said they downgraded B3's shares to neutral from buy after a recent price rally and after plugging third-quarter results into their model. B3 reported a 4.4% increase in net income from a year earlier.
B3 faces more downside risk if trading volumes on its exchanges don't improve soon, the analysts said. BTG also trimmed its estimates for earnings per share for 2024 and 2025.
Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com
(END) Dow Jones Newswires
11-13-23 0928ET
