Analysts from different banks and brokers updated the investment thesis of São Paulo broadcast (TRPL4) after Investor Day, an event led by the company’s board of directors that brings together investors and market experts.
Known for the good distribution of dividendsthe company reinforced at the event that it maintains its practice of distributing 75% of regulatory net income, subject to approval at the meeting.
However, board members considered that, in order to maintain the company’s longevity in the face of acquiring new assets, it makes sense to reduce dividends today and ensure greater value in the future.
Transmissão Paulista still wants to grow via assets greenfield (new) and should participate in the next bidding rounds, as signaled by the administration.
Despite the increase in capex (investment) overall, the company expects competition to remain strong. according to BTG PactualTransmissão Paulista could participate via consortia, although it has no exclusivity agreement with Taesa (TAEE11).
Regarding organic growth, Transmissão Paulista should invest almost R$ 600 million in reinforcements in 2022.
“[A Transmissão Paulista] has already obtained approval from Aneel to invest another R$ 5 billion, which the company expects to invest around R$ 1 billion per year”, comments BTG.
Is it worth buying the share?
BTG has a neutral recommendation for the shares of Transmissão Paulista, as it believes that there are other companies under its coverage that are offering a better risk-return ratio at the moment.
“We see Transmissão Paulista trading at an implied real IRR (internal rate of return) of 7.5%”, he comments.
The bank’s suggested target price is R$24.
O harvest, which expects Transmissão Paulista to participate in upcoming transmission auctions and potentially build partnerships for the largest blocks, also has a neutral recommendation. The institution sees the stock well priced, with a target price of BRL 25.20.
THE Eleven Financialon the other hand, maintains its buy recommendation for the name, with a target price of BRL 31.
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