Cosan (CZZ) Upgraded to Hold at Zacks Investment Research

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Cosan (NYSE:CZZ) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued on Wednesday, September 19th.

According to Zacks, “For 2018, Cosan affirmed its pro-forma net revenues to be R$50-R$53 billion. It also confirmed the EBITDA outlook of R$4.9-R$5.4 billion for the year. The company expects to gain from its focus on supply and commercialization strategy. Its Moove business will also benefit from international expansion plan. Cosan will also gain from hedging activities in sugar. Over the past year, Cosan’s American Depository Receipts (ADR) have outperformed the industry. However, the company has trimmed estimates for sugarcane crushing at Raízen due to drier weather which affected productivity at some regions. The company is also dealing with the adverse impacts of rising costs of sales and services. If unchecked, rise in costs is likely to prove detrimental to its profitability. Also, higher debt levels remain a concern.”

Separately, Credit Suisse Group lowered shares of Cosan from an “outperform” rating to a “neutral” rating in a research report on Monday, July 23rd. Four analysts have rated the stock with a hold rating and one has issued a buy rating to the company. The company presently has an average rating of “Hold” and a consensus target price of $12.50.

Shares of CZZ stock traded down $0.14 during mid-day trading on Wednesday, hitting $7.22. 1,274,512 shares of the stock traded hands, compared to its average volume of 1,044,877. The firm has a market cap of $1.64 billion, a price-to-earnings ratio of 11.28 and a beta of 2.18. Cosan has a 52-week low of $6.20 and a 52-week high of $11.89. The company has a debt-to-equity ratio of 1.43, a quick ratio of 1.48 and a current ratio of 1.58.

Cosan (NYSE:CZZ) last released its quarterly earnings results on Friday, August 10th. The basic materials company reported $0.13 EPS for the quarter. The business had revenue of $1.14 billion during the quarter. Cosan had a net margin of 4.79% and a return on equity of 4.77%. As a group, equities analysts predict that Cosan will post 0.55 earnings per share for the current fiscal year.

Institutional investors have recently made changes to their positions in the stock. Campbell & CO Investment Adviser LLC purchased a new position in shares of Cosan in the 2nd quarter valued at approximately $121,000. Element Capital Management LLC purchased a new position in Cosan during the 1st quarter worth approximately $125,000. Regal Investment Advisors LLC purchased a new position in Cosan during the 2nd quarter worth approximately $126,000. Barclays PLC raised its position in Cosan by 71.0% during the 1st quarter. Barclays PLC now owns 13,232 shares of the basic materials company’s stock worth $137,000 after buying an additional 5,492 shares during the last quarter. Finally, Cambria Investment Management L.P. purchased a new position in Cosan during the 2nd quarter worth approximately $188,000. 26.72% of the stock is owned by hedge funds and other institutional investors.

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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