WEG's shares have fallen by approximately 20% since December 2024. However, according to Heitor De Nicola, a variable income specialist at AVIN , the decline reflects more of a change in economic conditions than a structural problem at the manufacturer of motors and electrical equipment.
In an interview with Janela de Mercado , he stated that performance was pressured by the high comparison base, the appreciation of the real—about 60% of revenue comes from abroad—and high interest rates in Brazil, which reduced industry investments. Now, however, De Nicola sees a turnaround sustained by the electrification of the economy.
According to him, WEG is positioned in markets that are expected to receive increasing investments, such as power grids, renewable energy, data centers, and artificial intelligence. The construction of this infrastructure requires transformers, cooling systems, and motors, areas in which the company has expanded its production capacity in recent years.
“It wasn’t WEG that walked towards the artificial intelligence market. It was the artificial intelligence market that walked towards where WEG is positioned,” says De Nicola.
The restructuring of competitors may also open up opportunities to gain market share in the industrial motor market. With new factories expected to begin operations in early 2027, the analyst sees a favorable combination of high demand and limited supply.
"It's as if WEG is selling the pickaxes for this new gold rush," he says.
According to a report by BTG, the investment bank to which AVIN is associated, the target price for WEGE3 is R$ 65, which represents a potential appreciation of approximately 40% over the R$ 45 level recorded last week.
