New Position: A Hidden World Cup Beneficiary in Latin America
We are adding an undervalued small cap we believe is at an inflection point, with meaningful upside ahead.
We are adding a new stock to the Aurelion Index. Despite its geography, the stock has quite meaningful trading volume and is listed in the US on the NYSE.
We have seen a number of reports suggesting ways to benefit from the 2026 Football World Cup. Most of them focus on GDP growth or broader economic impact for the three host countries (Canada, the US, and Mexico, or even potential winning countries), or on more speculative ideas such as trading futures, betting markets, or sports betting apps. But we are not traders, and we are not looking at betting-related themes or anything of that sort.
Instead, we identified a company that we expect to benefit not only from the World Cup, but also from other factors that support the long-term story, rather than a one-off event, which is also what makes the opportunity compelling.
Before getting into the company itself, here are a few things that stood out to us.
We believe it is significantly misunderstood by analysts covering the stock and by the market more broadly, and that is where we strongly disagree.
We can understand the sentiment, given that it is a company that was historically highly leveraged with a large debt burden, but that profile has been improving meaningfully over time, and in our view it is now a very different story that the share price has yet to reflect. We believe the setup is compelling for two reasons.
First, the World Cup acts as a near-term catalyst.
Second, it sits alongside our view that Latin America is still in the early stages of a broader bull cycle. That combination is what we find most attractive.
Table of Contents
Introducing the Company
Investment Thesis
World Cup as a Key Catalyst
What’s Going On With the Company?
Where We Differ From the Market
How We Value the Company
6.1 Valuation Metrics
6.2 Price Target
Key Investment Risks
7.1 Downside Risks
7.1 Upside Risks
Our Final Take