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Companhia de saneamento Basico (SBS) Stock Analysis

Range Bound setup

SellVALUE-TRAP 1/5Moderate Confidence

Utilities · Utilities - Regulated Water

Earnings in 7 days (2026-05-07). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Sell if holding. Analyst target reached at $33.59 — A.R:R is negative (-1.3) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Earnings in 7 days (event risk).

Companhia de Saneamento Básico do Estado de São Paulo - SABESP provides basic and environmental sanitation services in the São Paulo State, Brazil. The company supplies treated water and sewage services on a wholesale basis. As of December 31, 2024, it provided water services... Read more

$33.59+4.6% A.UpsideScore 6.2/10#1 of 6 Utilities - Regulated Water
Stop $31.88Target $35.06(resistance)A.R:R -1.3:1
Analyst target$32.97-1.8%6 analysts
$35.06our TP
$33.59price
$32.97mean
$31
$37

Sell if holding. Analyst target reached at $33.59 — A.R:R is negative (-1.3) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Earnings in 7 days (event risk). Chart setup: RSI 46 mid-range, Bollinger mid-band. Score 6.2/10, moderate confidence.

Passes 4/7 gates (clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and earnings proximity 7d<=7d. Suitability: moderate.

Thesis

Rewards
Attractive valuation
Strong growth profile
Risks
Analyst target reached - limited upside remaining
Earnings in 7 days (event risk)
Consecutive earnings misses (2)

Key Metrics

P/E (TTM)67.2
P/E (Fwd)11.2
Mkt Cap$118.6B
EV/EBITDA3.5
Profit Mgn22.2%
ROE21.3%
Rev Growth43.9%
Beta0.20
Dividend0.48%
Rating analysts21

Quality Signals

Piotroski F6/9

Options Flow

P/C1.20bearish
IV59%elevated

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker·1 ceiling hit

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Macd
0.0
Volume
0.0
Obv
1.0
Rsi
5.5
Ma Position
9.0
Volume distribution (falling OBV)Above 200-day MA
GatesMomentum 3.1<4.5A.R:R -1.3=NEGATIVEEARNINGS PROXIMITY 7d<=7dInsider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARRange BoundSuitability: Moderate
RSI
46 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $29.74Resistance $35.78

Price Targets

$32
$35
A.Upside+4.4%
A.R:R-1.3:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-14.4% upside)
! NEWS_MOD=-2: HOLD_IF_HOLDING → SELL_IF_HOLDING
! Momentum score 3.1/10 — below 4.5 minimum

Earnings

B
M
M
M
1/4 beats
Next Earnings2026-05-07 (7d)

Verdict History

reverse chrono — latest first
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Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is SBS stock a buy right now?

Sell if holding. Analyst target reached at $33.59 — A.R:R is negative (-1.3) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Earnings in 7 days (event risk). Chart setup: RSI 46 mid-range, Bollinger mid-band. Prior stop was $31.88. Score 6.2/10, moderate confidence.

What is the SBS stock price target?

Take-profit target: $35.06 (+4.6% upside). Prior stop was $31.88. Stop-loss: $31.88.

What are the risks of investing in SBS?

Analyst target reached - limited upside remaining; Earnings in 7 days (event risk); Consecutive earnings misses (2).

Is SBS overvalued or undervalued?

Companhia de saneamento Basico trades at a P/E of 67.2 (forward 11.2). TrendMatrix value score: 7.0/10. Verdict: Sell.

What do analysts say about SBS?

21 analysts cover SBS with a consensus score of 4.2/5. Average price target: $33.

What does Companhia de saneamento Basico do?Companhia de Saneamento Básico do Estado de São Paulo - SABESP provides basic and environmental sanitation services in...

Companhia de Saneamento Básico do Estado de São Paulo - SABESP provides basic and environmental sanitation services in the São Paulo State, Brazil. The company supplies treated water and sewage services on a wholesale basis. As of December 31, 2024, it provided water services through 9.5 million water connections; and sewage services through 8.2 million sewage connections in the 375 municipalities of the São Paulo State. Companhia de Saneamento Básico do Estado de São Paulo - SABESP was founded in 1954 and is headquartered in São Paulo, Brazil.

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