Natura & Co stock faces a lower target after J.P. Morgan cuts rating

Published on 10/07/2026 at 00:43 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Natura & Co stock was last quoted at BRL 7.45 on October 2, 2026, after J.P. Morgan cut its target to BRL 8.50. Second-quarter revenue reached BRL 5.2 billion.

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Natura & Co stock (BRNATUACNOR6) was last quoted at BRL 7.45 on B3 on October 2, 2026. The latest company figures show BRL 5.2 billion in second-quarter revenue, BRL 620 million in EBITDA and BRL 342 million in free cash flow, while a J.P. Morgan downgrade has reset the valuation debate.

J.P. Morgan cuts target

According to Gazeta Mercantil on September 30, 2026, J.P. Morgan lowered its rating from Overweight to Neutral and cut its price target from BRL 11 for December 2026 to BRL 8.50 for December 2027. The target change came with a roughly 15 percent reduction in projected earnings per share, according to the report.

The revised target remains 14.1 percent above the BRL 7.45 price cited for October 2, 2026, but the comparison spans different valuation dates. J.P. Morgan also reduced its continuing-operations net income forecast for 2026 from BRL 311 million to BRL 184 million, a 41 percent cut, according to Suno.

Second quarter shows the split

For the quarter ended June 2026, Natura reported consolidated revenue of BRL 5.2 billion and EBITDA of BRL 620 million, equal to a 12 percent margin, according to Gazeta Mercantil. Net income was BRL 35 million, while free cash flow reached BRL 342 million.

The regional picture was uneven. Hispanic Latin American markets grew 7.2 percent and expanded profitability, but operational difficulties in Brazil reduced confidence in the recovery. That distinction matters because the stronger cash generation does not yet remove the execution risk in Natura's largest market.

Consensus stays Neutral

The published consensus was Neutral, with 14 analysts, one Buy, 12 Holds and one Sell. The average 12-month target was BRL 10.11, with targets ranging from BRL 8 to BRL 14, according to Investing.com on October 2, 2026.

That average target lies 35.7 percent above BRL 7.45, a wider gap than J.P. Morgan's revised target implies. The difference reflects the spread between a broad analyst survey and one bank's more cautious earnings assumptions.

Stock remains tied to execution

Natura & Co stock was last at BRL 7.45 on B3 on October 2, 2026. The next test is whether the new management team can convert positive free cash flow and Hispanic-market growth into a measurable recovery in Brazil.