After Strong Foreign Inflows in January, UBS BB Says It’s Time to Buy B3 (B3SA3); Shares Jump 5%

• B3’s Market Performance Today
• Why Is UBS BB Bullish on B3?
• What’s Next for B3?
• Risks and Competition
• FAQs

B3 (B3SA3) shares are shining bright on the Ibovespa (IBOV) this Friday, February 7, 2026, following a bullish upgrade from UBS BB. The stock surged as much as 5.10% intraday, hitting R$17.09, and remains one of the most traded equities on Brazil’s benchmark index. Here’s why analysts are turning bullish and what investors can expect next.

B3’s Market Performance Today

As of 1 PM Brasília time, B3SA3 was up 4.43% at R$16.98, making it the top performer on the Ibovespa. Trading volume was robust, with 20,800 transactions totaling R$544.9 million, ranking it as the third most-traded stock. This rally comes after UBS BB upgraded its rating from "neutral" to "buy" and raised its 12-month price target from R$16 to R$19.50—a potential 19.9% upside from yesterday’s close of R$16.26.

Why Is UBS BB Bullish on B3?

Analysts Kaio Prato, Camila Azevedo, and Bruno Kenji cite three key drivers:

• Monetary Easing Cycle: UBS expects Brazil’s central bank to cut the Selic rate to 11.5% by year-end, starting in March. This contrasts with the market consensus of 12.25% (per the latest Focus Report). Lower rates typically boost equity trading volumes.
• Foreign Investment Surge: January 2026 saw R$26.3 billion in foreign inflows—the highest since early 2022—exceeding the R$25.5 billion recorded for all of 2025. UBS calls this a potential "inflection point" after three years of sluggish activity.
• Attractive Valuation: B3 trades at a 35% discount to emerging-market peers and 31% below global exchanges, steeper than its historical discounts of 34–36%.

What’s Next for B3?

UBS projects average daily trading volume (ADTV) for equities to hit R$31.8 billion in 2026 (+25% YoY), driven by retail and foreign investors. By 2027, ADTV could reach R$32.7 billion. Net income is forecast at R$6.0 billion (+10% YoY) this year and R$6.4 billion (+6%) in 2027. Analysts also highlight tax benefits from additional equity interest payouts over the next three years.

Risks and Competition

While B3 dominates Brazil’s exchange landscape, competition in derivatives and OTC markets remains a watchpoint. However, UBS notes that segments like data and technology continue to support growth. "B3 is well-positioned to capitalize on this momentum," their report concludes.

FAQs

What caused B3’s stock to rise today?

The surge followed UBS BB’s upgrade to "buy" and a raised price target of R$19.50, citing strong foreign inflows and a favorable monetary policy outlook.

How does B3’s valuation compare to peers?

It trades at a 35% discount to emerging-market exchanges and 31% below global peers, wider than historical averages.

What’s the forecast for B3’s trading volume?

UBS expects 2026 ADTV to reach R$31.8 billion (+25% YoY), with further growth to R$32.7 billion in 2027.