Cosan Limited (CZZ), one of the world’s largest producers of sugar and ethanol, has been growing through acquisitions and other expansion strategies. The recently built Jata? mill is expected to boost production in the near term.
There is a lot of room for new investments and for a huge increase in Brazilian production in the following years. The Cosan-Shell joint venture would ensure better growth prospects, improvement in debt profile, setting up of a material and profitable bio-fuels business, and potential for development of next generation technologies.
Thus, we are upgrading our recommendation from Neutral to Outperform on the ADR. Our current target price is $10 per share.Zacks Investment Research
