SABESP Reports Strong Financial Growth in 2024 with New Concession Agreement

Companhia De Saneamento ( (SBS) ) has provided an announcement.

In 2024, SABESP reported a significant financial performance improvement, with adjusted EBITDA reaching R$ 11,339 million, a 19% increase from 2023, driven by tariff hikes and new connections. The company’s net income surged by 172% to R$ 9,580 million, bolstered by a new concession agreement signed in July 2024, covering 371 cities and expiring in 2060, which provided enhanced legal assurances and financial asset bifurcation. The management’s strategic initiatives, including a review of processes, legal claims reassessment, and IT infrastructure overhaul, are expected to position SABESP for future growth and operational efficiency.

The most recent analyst rating on (SBS) stock is a Buy with a $24.50 price target. To see the full list of analyst forecasts on Companhia De Saneamento stock, see the SBS Stock Forecast page.

Spark’s Take on SBS Stock

According to Spark, TipRanks’ AI Analyst, SBS is a Outperform.

Companhia De Saneamento’s overall stock score reflects strong financial performance and attractive valuation. The company’s robust revenue and profit growth demonstrate effective management and operational efficiency. The stock’s technical indicators show positive momentum, though caution is warranted due to overbought signals. The low P/E ratio suggests potential undervaluation, making it an appealing investment opportunity. However, the absence of current earnings call data and corporate events limits further insight into the company’s short-term prospects.

To see Spark’s full report on SBS stock, click here.

More about Companhia De Saneamento

Companhia de Saneamento Básico do Estado de São Paulo, also known as SABESP, operates in the basic sanitation industry in Brazil. The company primarily provides water and sewage services, focusing on the state of São Paulo, and has a significant market presence in this region.

Average Trading Volume: 1,185,078

Technical Sentiment Signal: Buy

Current Market Cap: $14.45B

Learn more about SBS stock on TipRanks’ Stock Analysis page.