HSBC Downgrades Cosan S.A. (NYSE:CSAN) from "Hold" to "Reduce", Cuts its PT to $1.13

With significant hedge fund interest, Cosan S.A. (NYSE:CSAN) secures a spot on our list of the 10 Cheapest Penny Stocks to Buy Now.

On September 23, 2025, HSBC downgraded Cosan S.A. (NYSE:CSAN) from “Hold” to “Reduce”, cutting its price target from $1.5 to $1.13.

This price revision follows steep declines in the Cosan S.A. (NYSE:CSAN)’s key units’ stock prices. Raizen is down 22% and Rumo is down 15% in dollar terms over the past three months. Furthermore, the investment firm widened its conglomerate discount to 35% from 30%, reflecting dilution risks from recent equity offerings.

HSBC also highlighted potential medium- to long-term benefits, including reduced leverage, improved governance, and enhanced infrastructure investment. Still, the investment firm remains cautious about Cosan S.A. (NYSE:CSAN)’s short-term portfolio weakness.

With its Raizen Compass, Moove, Rumo, and Radar businesses, Cosan S.A. (NYSE:CSAN) operates in fuel distribution and energy markets. It is one of the 10 Cheapest Penny Stocks to Buy Now.

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