Analysts have slightly raised their price target for Raízen, citing improved revenue growth expectations. However, this is offset by a higher discount rate and marginally lower profit margin forecasts.
What's in the News
- Raízen and Fomento Económico Mexicano (FEMSA) have reached an agreement to end their joint venture in Brazil. FEMSA will retain OXXO stores, while Raízen will keep Shell Select convenience stores. The transaction is designed to be cash-neutral for both parties. (Key Developments)
- Raízen S.A. has been added to the Brazil Small Cap Index. (Key Developments)
- Raízen S.A. has been removed from the Brazil Mid-Large Cap Index. (Key Developments)
Valuation Changes
- The discount rate has increased slightly from 21.45% to 21.74%.
- Revenue growth expectations have improved, shifting from a decline of 1.56% to a projected increase of 1.09%.
- The net profit margin forecast has edged lower, moving from 5.84% to 5.65%.
- The future P/E ratio has risen marginally from 2.62x to 2.67x.
- The fair value estimate remains unchanged.
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