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.
On September 23, 2025, HSBC downgraded Cosan S.A. 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.’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.’s short-term portfolio weakness.
With its Raizen Compass, Moove, Rumo, and Radar businesses, Cosan S.A. operates in fuel distribution and energy markets. It is one of the 10 Cheapest Penny Stocks to Buy Now.
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