Analysts have raised their price target for Companhia Paranaense de Energia, COPEL, from $13.86 to $14.09, citing modest improvements in expected revenue growth as the primary driver for this upward revision.
What's in the News
- An Extraordinary General Meeting on August 22, 2025, approved amendments to the company's bylaws to create a new class of "C" preferred shares. These shares are compulsorily redeemable and do not require a special meeting of shareholders for redemption (Key Developments).
- A mandatory conversion has been proposed for all existing preferred shares, with new shares to be issued in proportion. This is pending the fulfillment of conditions such as shareholder ratification and regulatory approvals (Key Developments).
- Amendments to statutory rules include aligning class "B" and "A" preferred share rights, the creation of new "C" preference shares, and changes aimed at improving corporate governance and preparing for potential Novo Mercado listing (Key Developments).
- The effectiveness of all planned changes is contingent upon obtaining waivers from creditors whose financial instruments may trigger early maturity due to the amendments (Key Developments).
- A Special/Extraordinary Shareholders Meeting is scheduled for August 22, 2025, to address these key bylaw and governance changes (Key Developments).
Valuation Changes
- Fair Value: Increased slightly from R$13.86 to R$14.09. This reflects a modest upward adjustment.
- Discount Rate: Remains unchanged at 17.8%, indicating no shift in perceived risk.
- Revenue Growth: Risen marginally from 2.99% to 3.04%, which suggests slightly improved sales expectations.
- Net Profit Margin: Decreased marginally from 13.05% to 13.02%. This indicates a small decline in expected profitability.
- Future P/E: Increased from 19.50x to 19.83x, pointing to a slightly higher valuation of projected earnings.
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