BUZZ-Brazil's Patria Investments slips after BofA downgrades stock
PAX•BofA cuts Patria Investments to underperform
- Patria Investments' PAX.O shares fell 3.8% to $10.77 in afternoon trading.
- BofA Securities downgraded the alternative asset manager to "underperform" from "neutral" and cut its price target to $10 from $14, implying a 10.7% downside to the stock's last close.
- The brokerage said Brazil macro deterioration is a key driver behind its downgrade.
- BofA added that PAX is the largest private markets business in LatAm, while Brazil remains its largest geography after a period of significant international M&A which diversified its business.
- It also said softer private equity returns weaken PAX's organic growth outlook.
- Three of seven brokerages rate the stock "buy", three "hold" and one "sell"; the median price target is $15, according to LSEG data.
- As of the last close, PAX stock was down 29.5% year to date.
