en usd impresionante.
Mira que esta recomendando hoy RJ afuera
Argentina: Winners from Macri’s First Sectorial Policies; Who and What is Next?
Agro-related companies and Banks are, undoubtedly, the winners in terms of President Macri’s first sectorial policies,in our view. The devaluation of the Argentine peso combined with the elimination/reduction of export rights is poised to boost agrorelatedfirms’ operating results. While, in the case of banks, the Central Bank has moved forward to remove caps on consumer loans
and floors on deposits rates that will support mid-term intermediation spreads, among other initiatives. Utilities are, in our view, the next in line.
The government announced its fiscal deficits target last week, which includes subsidy cuts of 1.5% of GDP (currently at around 4-5%). Although the plan is still under discussion, we expect the government to present the new program sometime in February.
Valuation wise, together with the performance of emerging market stocks, Argentine equities have slumped by an average of ~25% from their November highs, creating some attractive entry points, in our view. In-line with President Macri’s first sectorial policies and expected next moves, we currently favor Adecoagro, Grupo Financiero Galicia, and Pampa in our universe of coverage.
