Morgan Stanley and JP Morgan raise Brazilian stocks to overweight after Flávio Bolsonaro unexpectedly received 47.03 percent in the first round of the presidential election, versus 45.16 percent for opponent Lula.
Morgan Stanley sees around 10 percent further upside for both stocks and the real currency by year-end.
JP Morgan expects MSCI Brazil to rise around 20 percent and prefers interest-rate-sensitive stocks.
The second round will be held on October 25.
