2024-03-11 00:56:32 ET
Summary
- COPEL's transition to privatization has resulted in significant growth, with shares increasing by over 50% in the past year.
- Despite initial reservations, the company's improved operational efficiency and positive cash flow post-privatization justify upgrading the recommendation from neutral to buy.
- In Q4 2023, ELP reported impressive results, including a 10% increase in EBITDA and doubled annual profit, showcasing its resilience and potential for future growth.
- The company's strategic capital allocation and focus on securing long-term concessions provide stability and confidence in its future performance.
- While dividend resumption remains distant, COPEL's promising value thesis and real IRR of over 10% make it a compelling investment opportunity.
In this quarterly update on Companhia Paranaense de Energia - COPEL ( ELP ), I'm upgrading the company's shares from a neutral position to a buy."
As highlighted in my previous article , my initial investment thesis centered on COPEL's privatization, which transitioned from a state-controlled entity in Paraná, Brazil, to a private company....
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For further details see:
COPEL: Value Thesis Taken Shape, Best Yet To Come