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    Isabella Simonato

    Managing Director in Equity Research at Bank of America

    Isabella Simonato is a Managing Director in Equity Research at Bank of America, specializing in Latin American agribusiness and chemical companies. She covers major corporations such as Sociedad Quimica y Minera de Chile (SQM), Adecoagro, and Camil, offering investment recommendations that reflect deep insight into sector fundamentals and risks. Over her tenure at Bank of America, she has become a trusted analyst for these sectors, demonstrating rigorous market analysis—recent calls include a Sell rating on both SQM and Adecoagro based on anticipated financial and market risks. Simonato is recognized for her expertise in financial modeling and investment analysis; her professional credentials include advanced financial qualifications and regulatory compliance, supporting a reputation for thorough, data-driven research in Latin American equities.

    Isabella Simonato's questions to Adecoagro (AGRO) leadership

    Isabella Simonato's questions to Adecoagro (AGRO) leadership • Q2 2025

    Question

    Isabella Simonato of Bank of America requested more details on the Bitcoin mining partnership, including terms and contract length. She also asked about the impact of the new shareholder structure on the stock's trading liquidity and if there were any plans to address it.

    Answer

    CEO Mariano Bosch responded that the stock's liquidity remains reasonable and above its historical average, so it is not a current concern. On the Bitcoin partnership, he reiterated that it is a small-scale test using 5% of their energy production. The exact terms of the agreement are still being finalized, but the goal is to validate if they can achieve a highly attractive effective energy sale price, potentially above $80 per megawatt-hour.

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    Isabella Simonato's questions to Adecoagro (AGRO) leadership • Q4 2024

    Question

    Isabella Simonato of Bank of America followed up on ethanol price dynamics, asking for more detail on the context and timing for the ethanol-gasoline price parity potentially reaching 70%, given recent market history and upcoming seasonal production increases.

    Answer

    Executive Renato Pereira explained that strong demand, tight inventories (1.8 months of consumption vs. 2.2 last year), and a potential delay in the new crop could push prices higher and surpass the 70% parity level. He noted that the expected smaller, more sugar-focused Center-South crop and a potential blend mandate increase create a positive outlook. Executive Mariano Bosch confirmed they are selling current stocks to capitalize on favorable prices.

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    Isabella Simonato's questions to Adecoagro (AGRO) leadership • Q3 2024

    Question

    Isabella Simonato asked for an outlook on agricultural yields in Argentina, given favorable planting conditions, and requested details on the crop mix, noting the reduced exposure to corn.

    Answer

    Executive Mariano Bosch confirmed expectations for better year-over-year yields, assuming normal weather. He detailed a strategic shift in crop mix, with an increase in soybeans and a significant expansion in peanuts, which command strong prices in Europe. Sunflower planting is also up due to higher oil prices. Bosch highlighted that their fully integrated rice business, with its special varieties, maintains pricing power, contributing to record EBITDA in the segment.

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    Isabella Simonato's questions to Cosan (CSAN) leadership

    Isabella Simonato's questions to Cosan (CSAN) leadership • Q1 2025

    Question

    Isabella Simonato inquired about management's perspective on Raizen's recent performance and its operational prospects for fiscal year 2026. Additionally, she asked for details on the forward-looking liability management strategy, particularly concerning the remaining preferred shares.

    Answer

    Executive Marcelo Martins stated that Raizen's management is implementing swift changes to focus on its core business and improve efficiency, with divestments of energy and plant assets being actively pursued. Executive Rodrigo Alves added that while significant liability management occurred in Q1, the company will now hold more liquidity due to market uncertainty but will remain opportunistic. He noted the preferred shares are continuously monitored for cost-efficiency but are not a top priority for redemption.

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    Isabella Simonato's questions to Cosan (CSAN) leadership • Q4 2024

    Question

    Isabella Simonato asked about Cosan's debt profile, inquiring about the expected reduction in financial expenses following the Vale share disposal and associated liability management. She also requested clarification on the terms of the preferred shares and their role in the company's deleveraging strategy.

    Answer

    Executive Rodrigo Alves explained that the liability management strategy prioritizes callable, low-cost debt, such as the '27 bonds, and larger tranches like the '29, '30, and '31 bonds, to extend maturities without significant cost increases. He clarified that the preferred shares are not directly linked to the Vale acquisition, as proceeds are being used for bond and debenture liabilities. While no immediate changes are planned for the preferred shares, the company is monitoring optimization opportunities due to their cost step-up feature over time.

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    Isabella Simonato's questions to MARFRIG GLOBAL FOODS (MRRTY) leadership

    Isabella Simonato's questions to MARFRIG GLOBAL FOODS (MRRTY) leadership • Q1 2025

    Question

    Isabella Simonato inquired about the outlook for North American operations in Q2, considering seasonal demand versus potential tariff impacts, and asked for more detail on the timing and monetization of tax synergies from the proposed BRF merger.

    Answer

    Timothy Klein, an executive, addressed the North America outlook, noting a typical lag between rising cattle prices and boxed beef prices, but expects improved demand to help. He stated that tariffs have not had a measurable margin impact yet. An executive identified as Ignacio explained that tax synergies would come in two waves: an initial wave from capital structure optimization, and a second wave requiring additional steps in the year following the merger's approval.

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    Isabella Simonato's questions to MARFRIG GLOBAL FOODS (MRRTY) leadership • Q2 2024

    Question

    Isabella Simonato from Bank of America questioned the expected profitability contribution from the company's feedlot verticalization investments in South America. She also asked about capital allocation, specifically the alternatives for deleveraging the holding company and the role BRF's potential dividend payments would play.

    Answer

    An executive confirmed the feedlot strategy is successful, targeting 30% of supply from this system with slaughter beginning this year, which should improve margins and quality. Marcos dos Santos, an executive, addressed capital allocation, stating that both Marfrig and BRF are focused on reducing gross debt and deleveraging. He noted that BRF is prepared to pay dividends, with a decision on the amount likely next quarter.

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    Isabella Simonato's questions to MARFRIG GLOBAL FOODS (MRRTY) leadership • Q1 2024

    Question

    Isabella Simonato sought clarification on a BRL 2 billion cash disbursement for 'advances to suppliers,' asking if this was a prepayment for cattle or funding for an expansion of the company's feedlot operations. She wanted to understand the strategic purpose and counterpart for this significant cash use.

    Answer

    Rui Mendonca, an executive for South America, clarified that the BRL 2 billion is not a prepayment but a strategic investment to expand Marfrig's own herd to account for 25% of the slaughter rate in its continued operations. He explained this vertical integration aims to improve supply stability, enhance raw material quality for value-added products, and accelerate traceability goals. The return on this working capital investment will be realized gradually through the sale of premium beef.

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    Isabella Simonato's questions to AMBEV (ABEV) leadership

    Isabella Simonato's questions to AMBEV (ABEV) leadership • Q1 2025

    Question

    Isabella Simonato asked about Brazil beer sell-out volumes versus sell-in for Q1, the trajectory of the Skol brand, and whether the steep year-over-year decline in Q1 CapEx is indicative of the full-year trend.

    Answer

    Executive Carlos Eduardo Lisboa confirmed that sell-out volumes were slightly positive and in line with Ambev's performance, resulting in stable market share. He acknowledged that the Skol brand was the primary driver of the core segment's decline but reaffirmed its strategic importance and the company's commitment to restoring its growth. CFO Guilherme Fleury de Figueiredo Parolari addressed CapEx, stating that while he could not provide guidance, the company remains highly disciplined in its capital deployment and asset utilization.

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    Isabella Simonato's questions to AMBEV (ABEV) leadership • Q4 2024

    Question

    Isabella Simonato of Bank of America requested more details on the company's mention of pursuing inorganic growth. She also asked how Ambev plans to achieve margin expansion given the 2025 cost guidance for Brazil Beer is above inflation, seeking specifics on revenue management levers.

    Answer

    CEO Carlos Eduardo Lisboa described 2024 as the beginning of a margin recovery journey, stating that a strong focus on productivity and revenue management would be key to delivering margin expansion. CFO Lucas Lira clarified that organic growth remains the top priority, with inorganic growth being a secondary use of excess capital for strategic, value-accretive opportunities at the right price.

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    Isabella Simonato's questions to AMBEV (ABEV) leadership • Q2 2024

    Question

    Isabella Simonato inquired about the performance dynamics within Brazil's mainstream beer segment, focusing on the Brahma and Antarctica brands. She also asked about capital allocation strategy, given the year-over-year decrease in CapEx and strong free cash flow.

    Answer

    Executive Jean Neto stated that the core segment grew low single-digits, with focus brand Brahma and supporting brand Antarctica performing well, while Skol was a detractor. Executive Lucas Lira addressed capital allocation, explaining that Ambev is in a lower CapEx cycle after heavy investments from 2020-2022. He affirmed the strategy remains to reinvest for growth and return excess cash to shareholders, with a final decision by the Board at year-end.

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    Isabella Simonato's questions to JBSAY leadership

    Isabella Simonato's questions to JBSAY leadership • Q4 2024

    Question

    Inquired about the revenue growth outlook for 2025-2026, the consumer environment in the U.S. and Brazil, and requested an update on the dual listing process, including timelines and next steps with the SEC.

    Answer

    Executives noted strong global protein demand, particularly in the U.S. for beef and ready meals. Growth in Brazil is driven by value-added products. Regarding the dual listing, the company has filed with regulators in Brazil and will proceed with an official filing and a general assembly meeting, pending no challenges from the SEC. A specific timeline is difficult to provide as it depends on regulatory review.

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    Isabella Simonato's questions to BRF (BRFS) leadership

    Isabella Simonato's questions to BRF (BRFS) leadership • Q1 2024

    Question

    Isabella Simonato of Bank of America inquired about the company's capital allocation strategy, given its significantly lower leverage. She asked about the outlook for CapEx, potential new growth avenues, and the focus on shareholder returns, specifically referencing the recently announced buyback program and the possibility of dividends.

    Answer

    CEO Miguel de Souza Gularte stated that despite the improved leverage, the primary focus remains on reducing gross debt to regain an investment-grade rating. He noted that CapEx levels for the year are expected to be similar to last year's, as there is still idle capacity to be utilized for growth. CFO Fabio Mendes Mariano added that the company will be attentive to liability management opportunities. Regarding shareholder returns, he emphasized that management is focused on improving results, and decisions on dividends are up to the controller and the board.

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