Raízen (RAIZ4) can change the game with sugar and ethanol in 2023; BTG is on the buy side

The shares of root (ROOT4) are still at odds with the market this Tuesday (7). In the year, the action retreats around 2% and, since the IPObitter loss of 55%.

However, there is good potential for the company to turn the tide in the year, while many analysts abandoned the role.

O BTG Pactual reiterates Raízen’s buy recommendation, supported by the recovery of oil prices sugar It’s from ethanolwith a target price of BRL 8 over the next 12 months, which implies a potential appreciation of 152%.

Around 3:30 pm (Brasilia time), Raízen’s preferred shares had a slight increase of 0.32%, at R$ 3.15 each.

Raizen on the radar

The company returns to the market’s radar, since in the February 14th it presents results referring to the last quarter of 2022. In this sense, BTG analysts already leave a spoiler.

“The quarterly balance sheets released by sugar and ethanol companies have little to say, since companies, like Raízen, can sell their inventories in any period”, say analysts Thiago Duarte, Pedro Soares and Henrique Brustolin, in a report sent to customers.

Considering the complete photograph of the 2022/2023 harvest, the bank estimates that Raízen’s shares are more discounted than Saint Martin (SMTO3) It is vibrate energy (VBBR3), with combined multiples.

“Raízen’s shares are not only more discounted than their purebred peersas they can also unlock more value with their fronts in renewable energy and second-generation ethanol”, signal the specialists.