Stock Price & Analysis

Based on the technical analysis and recent market data, SBS stock shows a bullish momentum with a 1.33% gain in regular market trading and currently trades at $16.75, above its 20-day moving average of $15.92. The RSI-14 reading of 64.97 indicates strong momentum while staying below overbought levels.

Based on the provided data and technical analysis, here's the price prediction for SBS stock in 2025:

The stock price of SBS is expected to reach $19.50 by end of 2025, representing a potential upside of 16.4% from current price of $16.75, driven by strong technical momentum and positive analyst sentiment. The stock has shown consistent upward movement since December 2024, breaking through key resistance levels and maintaining above major moving averages. Recent institutional buying activity and favorable water utility sector outlook further support this bullish target.

The S1 support level for SBS Stock is $16 ,The R1 resistant level for SBS Stock is $16.86.

As of the end of day on 2025-02-10, the price of SBS Stock was $16.75.

The target price for SBS Stock according to analyst rating is 22.05, with the highest price target at 23.20 and the lowest at 20.90. Analysts have a Moderate Buy rating on SBS Stock overall.

The market cap of SBS is $11.4B.

Based on the provided financial data and recent market trends, here's a comprehensive analysis of SBS's valuation:

Valuation Analysis The stock shows signs of being fairly valued with improving fundamentals:

• P/E ratio has significantly decreased from 15.8x in Q1 2024 to 6.3x in Q3 2024, indicating improving earnings efficiency
• EV/EBITDA multiple declined from 7.64x to 4.15x over the same period, suggesting attractive enterprise value
• Price-to-Sales ratio at 1.65x and Price-to-Book at 1.62x are reasonable for a utility company

Financial Performance The company demonstrates strong financial improvement:

• Net income increased dramatically from $166M in Q1 to $1.1B in Q3 2024
• Gross margin expanded significantly from 39% to 73%
• ROE improved from 12.5% to 27.9%, showing enhanced profitability
• Debt-to-equity ratio improved from 71.8% to 62.9%, indicating better financial health

Market Position Recent stock performance shows some weakness, with SBS being among the top losers last week with an 8.4% decline. However, analysts maintain a positive outlook with a target price of $23.75, implying significant upside potential of 63.79% from recent trading levels.

Based on these metrics, SBS appears to be undervalued rather than overvalued, with strong fundamentals and improving financial metrics supporting potential upside.

Companhia de Saneamento Basico do Estado de Sao Paulo SABESP is a water and sewage service provider. The Company provides water and sewage services to a range of residential, commercial, industrial and governmental customers in over 360 municipalities in the state of Sao Paulo, including the city of Sao Paulo. The Company's segments include Water and Sewage. The Company also supplies treated water on a wholesale basis to approximately 10 municipalities located in the Sao Paulo metropolitan region and urban conurbations. The Company's activities comprise water supply, sanitary sewage services, urban rainwater management and drainage services, urban cleaning services, solid waste management services and related activities, including the planning, operation, maintenance and commercialization of energy, and the commercialization of services, products, benefits and rights that directly or indirectly arise from its assets, operations and activities.

Based on the provided data and analysis, here's a price prediction for SBS stock by 2030:

The stock price of SBS is projected to reach $28-30 by 2030, representing approximately 70% upside from current levels, driven by Brazil's expanding water and sanitation infrastructure investments and the company's monopolistic position in São Paulo state. Recent technical indicators show strong momentum with RSI at 64.97 and positive MACD of 0.48, suggesting continued upward trajectory. The company's strategic expansion and infrastructure modernization plans, coupled with analyst targets showing 63.79% upside potential from current levels, support this long-term bullish outlook.

SBS has a total of 11170 employees.