CSAN - Cosan: A Promising Player In Brazil's Energy Transition
2024-04-01 10:04:32 ET
Summary
- Brazil has enormous potential to be the leading nation in the energy transition with decarbonized products. In this sense, Cosan stands out as having the most significant energy transition projects.
- Despite its promising and diversified business, the company is extremely discounted compared to national and international peers and when compared to its own history.
- With the end of the investment cycle approaching, the company should report better results and have a revaluation of multiples by the market.
Investment Thesis
My recommendation is to buy Cosan ( CSAN ). Cosan is a holding company with diversified businesses that should be of vital importance for Brazil in the coming years with the energy transition that the world is expected to undergo.
Despite the diversification and reduction of operational risks, the company is extremely discounted compared to national peers. The investment cycle carried out by the company is close to the end, as a result it should report better results and have a multiple revaluation by the market.