HSBC Downgrades Cosan S.A. (NYSE:CSAN) from “Hold” to “Reduce”, Cuts its PT to $1.13

With significant hedge fund interest, Cosan S.A. (NYSE:CSAN) secures a spot on our list of the 10 Cheapest Penny Stocks to Buy Now.

HSBC Downgrades Cosan S.A. (NYSE:CSAN) from “Hold” to “Reduce”, Cuts its PT to $1.13

On September 23, 2025, HSBC downgraded Cosan S.A. (NYSE:CSAN) from “Hold” to “Reduce”, cutting its price target from $1.5 to $1.13.

This price revision follows steep declines in the Cosan S.A. (NYSE:CSAN)’s key units’ stock prices. Raizen is down 22% and Rumo is down 15% in dollar terms over the past three months. Furthermore, the investment firm widened its conglomerate discount to 35% from 30%, reflecting dilution risks from recent equity offerings.

HSBC also highlighted potential medium- to long-term benefits, including reduced leverage, improved governance, and enhanced infrastructure investment. Still, the investment firm remains cautious about Cosan S.A. (NYSE:CSAN)’s short-term portfolio weakness.

With its Raizen Compass, Moove, Rumo, and Radar businesses, Cosan S.A. (NYSE:CSAN) operates in fuel distribution and energy markets. It is one of the 10 Cheapest Penny Stocks to Buy Now.

While we acknowledge the potential of CSAN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CSAN and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 15 Stocks That Will Benefit From AI and 12 Best Quantum Computing Stocks to Buy According to Wall Street Analysts.

Disclosure: None.