Cosan S.A. (NYSE:CSAN) is one of the 10 Cheapest Penny Stocks to Buy Now, with significant hedge fund interest. However, HSBC downgraded CSAN from “Hold” to “Reduce” on September 23, 2025, cutting its price target to $1.13 due to steep declines in Raizen and Rumo stock prices. The investment firm widened its conglomerate discount to 35% from 30%.

HSBC highlighted potential medium- to long-term benefits for Cosan S.A. (NYSE:CSAN), such as reduced leverage, improved governance, and enhanced infrastructure investment. However, it remains cautious about the company’s short-term portfolio weakness. CSAN operates in fuel distribution and energy markets with businesses like Raizen Compass, Moove, Rumo, and Radar.

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Read more at Yahoo Finance: HSBC Downgrades Cosan S.A. (NYSE:CSAN) from “Hold” to “Reduce”, Cuts its PT to $1.13