Sabesp stock: BTG Pactual cuts target from BRL 32.00 to BRL 31.00

Published on 10/28/2026 at 07:08 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Second-quarter adjusted profit fell 41.20 percent to BRL 1.15 billion. Sabesp stock has November 5 results and BRL 6.30 billion revenue consensus.

Target and earnings calendar

BTG Pactual set a BRL 31.00 target on October 15, 2026.
Adjusted second-quarter profit fell 41.20 percent to BRL 1.15 billion.
Sabesp expects third-quarter results on November 5, 2026, with BRL 6.30 billion revenue in consensus estimates.

Sabesp, BRSBSPACNOR5, Illustration mit AI erstellt.

BTG Pactual cut its target for Sabesp from BRL 32.00 to BRL 31.00 on October 15, 2026, keeping the Brazilian water utility's near-term valuation under scrutiny. The next test is the third-quarter report, scheduled for November 5, 2026.

Target reflects weaker quarter

According to BTG Pactual, the target was reduced after Sabesp reported adjusted earnings before interest, taxes, depreciation and amortization of BRL 3.50 billion for the second quarter of 2026, below the BRL 4.03 billion estimate. The report also cited a 58.30 percent adjusted margin and higher service, treatment and credit-loss costs.

The earnings pressure was visible in the reported profit. Diario do Grande ABC reported adjusted net income of BRL 1.15 billion in the second quarter of 2026, down 41.20 percent from the same period of 2025. Adjusted net revenue still rose 6.70 percent to BRL 6.013 billion, while operating costs and expenses increased 24.50 percent.

Three dates define the setup

Sabesp's recent chronology shows the shift from operating growth to cost control. On August 12, 2026, adjusted second-quarter net income fell to BRL 1.15 billion; on October 14, 2026, a debenture holders' meeting lacked the 35.70 percent quorum needed for the first call; and on October 26, 2026, the company schedule pointed to November 5, 2026, for third-quarter results, according to El Fondo and BTG Pactual.

What does the BRL 31.00 target imply?

The lower target places emphasis on whether temporary spending pressure eases. BTG Pactual said only BRL 70.00 million of roughly BRL 370.00 million in additional second-quarter costs was expected to be recurring, while Sabesp invested BRL 3.73 billion in the quarter and BRL 7.46 billion in the first half of 2026.

November results carry the next signal

El Fondo reported consensus estimates of BRL 6.30 billion in revenue and BRL 0.38 in earnings per share for the third quarter of 2026. The report will also show whether the second-quarter cost increase and higher debt burden continued into the second half.