EVENTS:   The Roaring 2020s or a Rerun of the 1970s? - Edward Yardeni/Yardeni Research - 24 Mar 26   Best Equity Short Ideas Conference Call 13 - Thomas Chanos/Badger Consultants & Dr. Aaron Fletcher/Bios Research & Jonathan Telgener/Channel Dynamics & Ed Steele/Iron Blue Financials & John Zolidis/Quo Vadis Capital & Mark Hiley/The Analyst - 26 Mar 26     ROADSHOWS: Chinese Equity Ideas & Channel Checks Across 50 sub-sectors - Don Ma /Horizon Insights   •   London   23 - 27 Mar 26       Long Short European Equity Research - Harry Grist /The Analyst   •   New York   26 Mar 26       Fundamental US Healthcare Short Ideas - Dr Elliot Favus /Favus Institutional Research   •   London   27 - 27 Mar 26      
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Raia Drogasil (RADL3 BZ)

Consumer Staples

MYST Advisors

The Brazilian pharmaceutical market has grown at a ~12% CAGR “forever”, with only one down month going back 20+ years (Apr 20 when ALL stores were closed). RD has consistently gained ~50bps of market share every year since 2007 and is bigger than the #2 through #5 players combined. The presenter highlighting the stock at MYST’s Consumer Event envisions considerable upside to earnings, underscoring management’s “phenomenal” track record, “incredible” unit economics with ~35% ROIs on new stores, and while current EBIT margins are ~5%, mature stores are yielding closer to LDD’s. TP R$48 (70% upside).

Edition: 161

- 26 May, 2023