HSBC downgraded Cosan to Reduce from Hold with an unchanged price target of R$13.50. Cosan now trades at a 20% premium to its sum-of-the-parts, and its non-listed parts may be soon listed if the equity market’s outlook continues to improve with upcoming interest rate cuts, the analyst tells investors in a research note. Given Cosan’s “complex structure,” the firm thinks the stock deserves to trade at a discount to its sum-of-the-parts.
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