According to Zacks, “For 2018, Cosan affirmed its pro-forma net revenues at R$50-R$53 billion. Cosan revised Comgás’ normalized EBITDA range to R$1.90-R$1.95 billion due to higher volume sold and efforts to control expense. In Raizen Energia, the company maintained the initial EBITDA projections of R$3.4-R$3.8 billion. Over the past year, Cosan’s American Depository Receipts (ADR) have outperformed the industry. However, at Raízen Combustíveis, Cosan narrowed the EBITDA projections for 2018 to R$2.75-R$2.95 billion. The guidance reflects reduction in the Otto cycle fuel demand, as well as impact of the truckers’ strike. Further, Cosan’s results will be hurt by adverse impacts of rising costs of sales and services, unfavorable weather conditions and increase in debt.”
CZZ has been the topic of a number of other research reports. JPMorgan Chase & Co. upgraded Cosan from a neutral rating to an overweight rating and lifted their target price for the company from $12.50 to $13.00 in a research report on Tuesday, February 19th. Morgan Stanley upgraded Cosan from an equal weight rating to an overweight rating and set a $13.00 target price on the stock in a research report on Wednesday, January 16th. Four analysts have rated the stock with a hold rating and two have assigned a buy rating to the company’s stock. Cosan presently has a consensus rating of Hold and a consensus price target of $11.92.
A number of institutional investors have recently added to or reduced their stakes in the business. Quantamental Technologies LLC acquired a new stake in shares of Cosan during the fourth quarter valued at about $89,000. First Trust Advisors LP acquired a new stake in shares of Cosan during the fourth quarter valued at about $100,000. Bank of New York Mellon Corp boosted its stake in shares of Cosan by 13.5% during the fourth quarter. Bank of New York Mellon Corp now owns 12,897 shares of the basic materials company’s stock valued at $113,000 after purchasing an additional 1,535 shares in the last quarter. SG Americas Securities LLC acquired a new stake in shares of Cosan during the third quarter valued at about $113,000. Finally, O Shaughnessy Asset Management LLC acquired a new stake in shares of Cosan during the fourth quarter valued at about $113,000. Hedge funds and other institutional investors own 26.96% of the company’s stock.
Cosan Company Profile
Cosan Limited, together with its subsidiaries, engages in fuel and natural gas distribution, logistics, lubricant, sugar and ethanol businesses primarily in Brazil and internationally. The company's Raízen Energia produces and markets products derived from sugar cane, including raw sugar, anhydrous, and hydrated ethanol, as well as activities related to energy cogeneration from sugarcane bagasse.
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