Cosan (CSAN) Down More than 25.75% YTD, Wall Street Sees More Than 33% Upside

1 week ago 4

Talha Qureshi

Fri, January 2, 2026 astatine 9:50 AM CST 2 min read

Cosan S.A. (NYSE:CSAN) is 1 of the Best High Volume Penny Stocks to Buy. Cosan S.A. (NYSE:CSAN) has fallen much than 25.75% year-to-date. However, Wall Street sees much than 33% upside from the existent levels. Recently, connected December 16, Fitch Ratings affirmed the company’s Long-Term Foreign and Local Currency Issuer Default Ratings astatine BB, but revised the outlook to antagonistic from stable. The standing bureau besides upheld the National Scale Rating astatine ‘AAA(bra)’ for Brazil.

The steadfast noted that the downgrade is owed to the company’s elevated leverage and reliance connected selling assets to easiness indebtedness pressures. The steadfast besides highlighted that, contempt the caller BRL 10.5 cardinal follow-on stock offering, the institution needs to chopped its indebtedness further.

That said, earlier connected December 5, HSBC upgraded Cosan S.A. (NYSE:CSAN) from Sell to Hold with a terms people of $5. The steadfast noted that the upgrade reflects the company’s earlier BRL10.5 cardinal equity issuance astatine BRL5.00 per share. This issuance led to an summation successful the company’s outstanding shares by 112%. HSBC noted that portion the institution has not been profitable implicit the past 12 months, they expect the institution to instrumentality to profitability successful 2026, with income forecasted to turn astatine 2.63%.

Cosan S.A. (NYSE:CSAN) is simply a Brazilian institution specializing successful the substance organisation business. Founded successful 1936, the institution operates done 5 segments: Raízen, Compass, Moove, Rumo, and Radar.

While we admit the imaginable of CSAN arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published astatine Insider Monkey.