Brazil's Sabesp Upgraded on Lower Risk of Water Shortage -- Market Talk

Dow Jones
01/24

1457 ET - Brazil's water and sewage utility Sabesp is likely to avoid water-shortage penalties investors have been worried about, UBS BB analysts write. They upgrade Sabesp to buy from neutral and increase the price target to 169 from 162 Brazilian reais per share. The analysts see the current price --138 BRL a share-- "as an attractive entry point opportunity." They say reservoirs' levels are higher than in previous supply crisis and stress tests show that "even in a worst-case scenario, the financial impact [of water shortage] would be limited to approximately 2.5% of market cap, which is not as severe as the market appears to be pricing in." Sabesp's ADR rises 2%. (paulo.trevisani@wsj.com; @ptrevisani)

 

(END) Dow Jones Newswires

January 23, 2026 14:57 ET (19:57 GMT)

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