Sabesp initiated with a Buy at Goldman Sachs

Goldman Sachs analyst Bruno Amorim initiated coverage of Sabesp with a Buy rating and $24.50 price target The firm believes Sabesp offers a “unique opportunity” for investors to gain exposure to the sanitation sector given the company’s scale and “significant room” for cost reduction due to the recent privatization. Regulatory changes bring visibility on attractive returns for organic capex, the analyst tells investors in a research note.