Cosan S.A. (CSAN) Gets Upgraded to Hold From Reduce by HSBC

Cosan S.A. (NYSE:CSAN) is one of the best long-term penny stocks to invest in. Cosan S.A. (NYSE:CSAN) was upgraded to Hold from Reduce by HSBC on December 3, with the firm raising the price target to $5 from $4.40. HSBC told investors in a research note that the company’s equity offering proceeds would be employed to pay down expensive debt, helping it restructure the remaining diversified assets portfolio.

Cosan S.A. (NYSE:CSAN) released its fiscal Q3 2025 results on November 14, reporting an EBITDA under management of BRL 7.4 billion, down by around BRL 1 billion compared to last year. This drop was primarily attributed to the results of MOVE, Haddad, and Raizen. Management also stated that Cosan S.A. (NYSE:CSAN) faced a challenging macroeconomic environment in Brazil, with a backdrop characterized by declining commodity prices and rising internet rates. In addition, the Brazilian real also appreciated against the US dollar.

Cosan S.A. (NYSE:CSAN) further reported a lower net income in the period, negative BRL 1.2 billion, given the lower EBITDA and the higher financial expenses. The company’s net debt, however, was relatively stable in the quarter and slightly higher than Q2 2025.

Cosan S.A. (NYSE:CSAN) produces and sells sugar and ethanol, with the company’s operations divided into six segments: Raízen Energia, Raízen Combustíveis, Radar, COMGÁS, Lubrificants, and Cosan Corporate.

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Disclosure: None. This article is originally published at Insider Monkey.