How might this news influence the stock's valuation multiples (P/E, EV/EBITDA) and investor sentiment?

Valuation impact – The Q2 net‑income of BRL 445 m signals a strong earnings rebound after the integration of the Avon brands (Wave 2) and a more disciplined working‑capital regime. Because EBITDA is expected to rise from the higher‑margin, more‑mature Latin‑American markets and the upcoming sale of Avon International should generate a sizeable one‑time cash influx, analysts will likely upgrade the earnings outlook. The immediate effect will be a rise in the price‑to‑earnings (P/E) multiple as the market prices in higher forward earnings and a tighter earnings‑multiple discount relative to peers. Simultaneously, the cash proceeds from the Avon divestiture will reduce net debt, shrinking enterprise value (EV) while EBITDA improves, so EV/EBITDA will likely tighten (i.e., move lower), reflecting a more efficient capital structure. The net result is a higher equity valuation (higher P/E, lower EV/EBITDA) that reflects both the operational upside and the balance‑sheet de‑risking from the divestiture.

Investor sentiment & trading implications – The sentiment score of 60 (moderately positive) aligns with a bullish bias. The market is likely to reward the “visibility” gain from the planned Avon sale, prompting a short‑term price rally on the news, especially if the share breaks above its recent consolidation range (e.g., above the 50‑day moving average). Traders can consider long‑biased entry around current levels, targeting the next resistance band (e.g., the prior high of the last 3 months) while keeping a stop‑loss below the recent low or the 20‑day EMA. On the downside, any delays in the Avon transaction or a miss on the integration cost savings could reverse sentiment, so monitor the company’s divestiture timeline and any subsequent guidance revisions for risk management. Overall, the earnings beat and strategic divestiture make the stock attractive for a medium‑term buy with a target of 5‑7% upside on a 2‑3 week horizon, pending confirmation from volume‑driven price action.