UBS upgrades Petz stock on merger margin gains
Published on 10/16/2026 at 00:33 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSIntegration and valuation markers
- UBS BB raised its Petz-Cobasi target from BRL 3.75 to BRL 6.50 on October 15, 2026.
- Second-quarter revenue reached BRL 1.77 billion, up 7.9 percent year over year.
- The next results are scheduled for November 12, 2026, followed by a conference on November 13, 2026.
Petz (BRPETZACNOR2) faces a BRL 6.50 UBS BB target after the Petz-Cobasi merger delivered high-single-digit revenue growth in the first half. On October 15, 2026, Veja reported that UBS BB raised its recommendation from neutral to buy and its target from BRL 3.75 to BRL 6.50.
What does the target change mean?
The upgrade rests on the integration of Petz and Cobasi, completed in January 2026, and the prospect of further cost savings. UBS BB expects revenue growth of 8 percent in 2026 and 2027, while its adjusted net profit estimate for 2027 rose 29 percent to BRL 435 million, according to Veja. The counterweight is execution: the group must convert store rationalization, supplier negotiations and private-label sales into durable margins.
Second-quarter growth sets the base
For the second quarter of 2026, Petz-Cobasi reported net revenue of BRL 1.77 billion, up 7.9 percent from the pro forma second quarter of 2025. Adjusted EBITDA reached BRL 186.74 million, an increase of 11.0 percent, while adjusted EBITDA margin was 10.6 percent, TraderNews reported on September 25, 2026. The business also operated 520 stores at June 30, 2026, giving the merger a larger physical base for digital fulfillment and services.
Three dated steps for investors
On January 23, 2026, Petz's investor-relations page listed a BRL 0.71 cash payment per redeemed preferred share. On August 13, 2026, the company published its second-quarter results, with BRL 1.77 billion in revenue and BRL 70.3 million in adjusted net profit, according to TraderNews. The current event is the UBS BB upgrade reported on October 15, 2026.
Next results arrive November 12
The next scheduled results date is November 12, 2026, followed by an earnings conference on November 13, 2026, according to TraderNews. Those dates will test whether the first-half revenue growth and margin improvement can continue after the merger.
