2024-07-09 05:11:56 ET
Summary
- Sabesp is the largest Brazilian sanitation company, and is very robust compared to its peers.
- Its concessions have extended deadlines; in addition, privatization can be a catalyst for even better results.
- Despite finding it a good company, its valuation seems stretched given its history. And I prefer to wait for a more opportune moment to recommend buying the shares.
Investment Thesis
I recommend holding shares of Companhia de Saneamento Básico do Estado de São Paulo - SABESP ( Sabesp) ( SBS ). The company is responsible for basic sanitation services in the largest state in Brazil, the state of São Paulo, which gives it greater robustness than its peers....
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Sabesp: Privatization Is Already Priced In