Analyst Gustavo Faria of Bank of America Securities maintained a Buy rating on Central Puerto SA, with a price target of $20.00.
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Gustavo Faria has given his Buy rating due to a combination of factors including Central Puerto SA’s strong financial performance and favorable market conditions. The company reported a significant increase in its top-line revenue, driven by higher renewable energy generation and increased contracted thermal volumes, which contributed to improved operating margins. Despite higher operational and maintenance costs, the company’s adjusted EBITDA surpassed expectations, reflecting its robust financial health.
Furthermore, Faria sees potential upside in Central Puerto’s valuation due to anticipated power sector deregulation. The company’s current trading metrics suggest a discount compared to historical levels, and the new regulatory framework is expected to enhance returns. Central Puerto’s exposure to the upcoming changes in the power sector positions it well to benefit from these developments, justifying the Buy rating with a price objective of 20.00 USD.
According to TipRanks, Faria is a 3-star analyst with an average return of 24.4% and a 63.64% success rate. Faria covers the Utilities sector, focusing on stocks such as Companhia De Saneamento, Pampa Energia SA, and Centrais Eletricas Brasileiras SA – Eletrobras.
In another report released on November 1, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $17.50 price target.