Companhia de Saneamento Basico do Estado de Sao Paulo (NYSE:SBS) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research report issued on Wednesday. The brokerage currently has a $9.50 price objective on the stock. Zacks Investment Research’s price target indicates a potential upside of 15.15% from the company’s current price.

According to Zacks, “SABESP's long-term prospects remain bright, as growth in the Brazilian population is leading to higher demand for water and sewage services. The company aims to achieve 95% sewage coverage ratio and add 1.4 million new sewage connections by 2020 and nearly 1 million water connections by 2021. Also, it has planned investments worth R$12.5 billion for 2016-2020. In third-quarter 2016, the company recorded net income of R$573.9 million versus net loss of R$580.1 million in the year-ago quarter. Earnings per American Depository Receipt came in at $0.26, ahead of the Zacks Consensus Estimate of $0.17. Revenue grew 17.2% year over year, driven by tariff hike, absence of bonus granted under the company's Water Consumption Reduction Incentive Program, and a rise in billed water and sewage volumes.”

Other research analysts have also issued research reports about the company. Janney Montgomery Scott lowered Companhia de Saneamento Basico do Estado de Sao Paulo from a “buy” rating to a “neutral” rating in a research report on Wednesday, August 3rd. JPMorgan Chase & Co. lowered Companhia de Saneamento Basico do Estado de Sao Paulo from an “overweight” rating to a “neutral” rating in a research report on Friday, July 29th. Finally, Scotiabank upgraded Companhia de Saneamento Basico do Estado de Sao Paulo from an “underperform” rating to a “sector perform” rating in a research report on Monday.

Companhia de Saneamento Basico do Estado de Sao Paulo (NYSE:SBS) opened at 8.25 on Wednesday. The firm has a market cap of $5.64 billion, a price-to-earnings ratio of 7.27 and a beta of 1.97. The company’s 50-day moving average price is $9.66 and its 200-day moving average price is $8.86. Companhia de Saneamento Basico do Estado de Sao Paulo has a one year low of $3.98 and a one year high of $10.55.

Several hedge funds have recently made changes to their positions in the company. Gotham Asset Management LLC bought a new stake in shares of Companhia de Saneamento Basico do Estado de Sao Paulo during the third quarter valued at about $104,000. M&T Bank Corp increased its stake in shares of Companhia de Saneamento Basico do Estado de Sao Paulo by 1.8% in the third quarter. M&T Bank Corp now owns 11,358 shares of the company’s stock valued at $105,000 after buying an additional 197 shares during the period. United Services Automobile Association bought a new stake in shares of Companhia de Saneamento Basico do Estado de Sao Paulo during the third quarter valued at about $110,000. Quantbot Technologies LP bought a new stake in shares of Companhia de Saneamento Basico do Estado de Sao Paulo during the third quarter valued at about $118,000. Finally, Van ECK Associates Corp increased its stake in shares of Companhia de Saneamento Basico do Estado de Sao Paulo by 17.3% in the second quarter. Van ECK Associates Corp now owns 13,372 shares of the company’s stock valued at $120,000 after buying an additional 1,975 shares during the period. 16.12% of the stock is currently owned by institutional investors and hedge funds.

About Companhia de Saneamento Basico do Estado de Sao Paulo

Companhia de Saneamento Basico do Estado de Sao Paulo-SABESP is a water and sewage service provider. The Company provides water and sewage services to a range of residential, commercial, industrial and governmental customers in over 360 municipalities in the state of Sao Paulo, including the city of Sao Paulo.

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