Morgan Stanley Upgrades Brazil to Overweight, Sees Ibovespa at 250k in Optimistic Scenario

Morgan Stanley upgraded Brazilian equities to overweight following the first round of elections, projecting 15-20% upside by year-end and further gains in 2027 if fiscal policy changes. The bank's optimistic scenario targets Ibovespa at 250,000 points by mid-2027. This signals improved investor sentiment toward Brazil, contingent on fiscal reform prospects.