Latin American stocks can avoid the onslaught of their North American counterparts in 2022. And investment bank UBS predicts that will continue this year. This sentiment is also reflected in the iShares Latin America 40 ETF, which is up nearly 4% this year after posting a 10% gain last year. The US benchmark S & P 500 is up by the same amount this year – but down more than 19% in 2022. UBS shares its top listed stock client in Latin America, where it expects a “near-term catalyst” to move stocks. prices. “We have focused on stocks where we believe our analysts have a very different view vs the consensus and where we see near-term catalysts playing a major role,” the analysts wrote to clients. Here are three buy-rated stocks with more than 50% upside from UBS’s February 8 “high ideas with catalyst” report. Cielo UBS analyst Kaio Prato expects shares in Cielo to rise 88% to 4.79 Brazilian Reals ($0.9) a share over the next 12 months, more than the 6.3% consensus average price target compiled by FactSet. Cielo, Brazil’s largest credit and debit card operator, is expected to benefit from the Brazilian Central Bank’s decision to cover interchange fees from April 1. These fees are usually paid by payment processing companies, like Cielo, to the banks that issue the cards to customers. . Investment bank Sabesp expects shares in Sao Paulo state-based water supply and treatment company Sabesp to rise 59% over the next 12 months, in line with consensus estimates. UBS said the company, one of the world’s largest sanitation companies serving 28 million people in Brazil, will benefit from the efficiency and privatization expected from the newly elected São Paulo state chamber. According to UBS, the majority of members elected to the state legislature from historically right-wing parties favor privatization. Vibra shares of Vibra Energia, Brazil’s largest gas station operator, are expected to rally as much as 50%, according to UBS. The price target is twice as high as the average price target of analysts surveyed by FactSet. The company will withdraw from oil major Petrobras in 2021 and will benefit from the $590 million acquisition of energy trading company Commerc. While the deal is due to start in 2021, UBS believes “the market does not value” the income from Comerc. “We expect earnings up to 2023 to be a positive catalyst as the value from Commerc increases its share in Vibra’s consolidation. [earnings]”said analyst Luiz Carvalho. “Especially [second half this year] could prove to be an important signal of potential future dividends if the impact falls further.