Companhia de Saneamento Basico do Estado de Sao Paulo (SBS) shares are trading at higher $10.05 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $12.52.
To add more color to this target, the company’s high over the last year is $14.89 and the low is $5.36. Over the last 52 weeks, SBS is down -32.52% while the S&P 500 is up 0.22%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, SBS reported a profit of $222.41 million. Companhia de Saneamento Basico do Estado de Sao Paulo also saw revenues increase to $826.67 million. In addition, SBS has free cash flow of $536.05 million as of 06-2020. The company’s EBITDA came in at $296.34 million which compares well with its peers.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. SBS has a short ratio of 1.56 and outstanding shares of 693.39M.
SBS has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.06 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.56. Companhia de Saneamento Basico do Estado de Sao Paulo SBS also noted assets of $9.09 billion at the end of the last quarter. Investors should also keep an eye on sector updates as SBS has historically followed its peers on positive news.
All told, Companhia de Saneamento Basico do Estado de Sao Paulo SBS has strung together solid data and demonstrated underlying fundamentals. At its current valuation, SBS represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Companhia de Saneamento Basico do Estado de Sao Paulo SBS is now commanding a market cap of 6.97B and a float of 338.09M. SBS is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of SBS stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in SBS, either long or short, and we have not been compensated for this article.