The Point for Latin America

Citi Research's "The Point for Latin America" (27 October 2026) rounds up post-election views across Brazilian and LatAm assets. Lula won the runoff 51.8% to 48.2% against investor expectations, prompting a sharp negative reaction: PBR fell 23% pre-market, IBOV/SMALL dropped 14%/27%, BRL fell 8% and 10-year nominal yields widened 240bp in a single session on concerns over fiscal policy, state-owned enterprises and the reform agenda. On single stocks, Randon was downgraded to Neutral with the target cut to R$8.10 from R$9; Buy ratings were maintained on Suzano (TP cut to R$52), Ultrapar, Prio and Copel;