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Stock impact report

Cosan (CSAN) Down More than 25.75% YTD, Wall Street Sees More Than 33% Upside [Yahoo! Finance]

Cosan S.A. ADS (CSAN) 
Company Research Source: Yahoo! Finance
However, Wall Street sees more than 33% upside from the current levels. Recently, on December 16, Fitch Ratings affirmed the company's Long-Term Foreign and Local Currency Issuer Default Ratings at BB, but revised the outlook to negative from stable. The rating agency also upheld the National Scale Rating at ‘AAA(bra)' for Brazil. The firm noted that the downgrade is due to the company's elevated leverage and reliance on selling assets to ease debt pressures. The firm also highlighted that, despite the recent BRL 10.5 billion follow-on share offering, the company needs to cut its debt further. That said, earlier on December 5, HSBC upgraded Cosan S.A. (NYSE:CSAN) from Sell to Hold with a price target of $5. The firm noted that the upgrade reflects the company's earlier BRL10.5 billion equity issuance at BRL5.00 per share. This issuance led to an increase in the company's outstanding shares by 112%. HSBC noted that while the company has not been profitable over the past 12 months, Show less Read more
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