Analyst Isabella Simonato of Bank of America Securities maintained a Buy rating on Cosan (CSAN – Research Report), with a price target of $12.20.
Isabella Simonato’s rating is based on Cosan’s strategic financial maneuvers and its potential for long-term growth. Despite reporting a significant net loss in the fourth quarter of 2024, largely due to extraordinary impairments and financial expenses, the company has demonstrated resilience through effective liability management and asset divestments.
Cosan’s recent sale of its stake in Vale and other asset sales have bolstered its cash flow and allowed the company to manage its debt effectively, with no maturities until 2028. These actions, coupled with the company’s unique assets in Brazil, position it as a strong long-term investment. The ongoing deleveraging process and portfolio optimization are expected to enhance financial stability and cash flow generation, supporting the Buy rating.
CSAN’s price has also changed dramatically for the past six months – from $10.120 to $5.100, which is a -49.60% drop .