Raízen’s analyst price target has been modestly adjusted upward to $1.98. Analysts cite incremental changes in profitability and underlying risk assumptions as the key drivers behind the revised valuation.
What's in the News
- Raízen and Fomento Económico Mexicano, S.A. de C.V. (FEMSA) have amicably terminated their joint venture in Brazil, Grupo Nós. This change enables each company to focus on their respective business strategies (Key Developments).
- FEMSA will retain all OXXO stores in Brazil and the Cajamar distribution center, which strengthens its strategic priority in the country (Key Developments).
- Raízen will retain ownership of all Shell Select convenience stores in Brazil following the transaction (Key Developments).
- The separation is structured to be cash-neutral, with FEMSA assuming the joint venture's outstanding debt as of closing (Key Developments).
Valuation Changes
- Fair Value: Remains virtually unchanged at approximately R$1.98 per share.
- Discount Rate: Increased slightly from 21.74% to 21.96%. This reflects a modest rise in perceived risk.
- Revenue Growth: Holds steady at roughly 8.5% year-over-year. This indicates no material change in growth expectations.
- Net Profit Margin: Declined modestly from 5.65% to 5.58%.
- Future P/E: Rose fractionally from 2.67x to 2.71x, suggesting a minor revision in future earnings expectations.
Have other thoughts on Raízen?
Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.
Create NarrativeDisclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.