A CSN (CSNA3) left analysts very impressed with the balance sheet for the third quarter, released last night (15). Among the first comments released this morning, the highlight is the report of the Safra Bank, which raised the steelmaker’s target price from R $ 17.60 in 2020 to R $ 23 in 2021.
The new value represents a high potential of 18% over the quotation used as a benchmark by the bank. Conrado Vegner and Victor Chen, who signed the analysis, reinforced the recommendation to buy the paper.
The duo argues that the third quarter results show that the Brazilian steel is recovering from the impacts of the coronavirus. “In addition, CSN can continue to benefit from the resilient prices of iron ore,” add the two.
“We still see room for further appreciation, even after the recent excellent performance of the stock price (+ 63% in the last 3 months vs. -3% for the Ibovespa index)”, they complete.
Another point that pleased Safra was the drop in CSN’s debt level. The company closed September with a net debt of R $ 30.6 billion, equivalent to 3.7 times the company’s value on ebitda (EV / Ebitda). In June, the ratio was 5.2 times. In addition, the company said it expects to lower it to 2.5 times in 2021.
CSN ended the third quarter with net income of R $ 1.2 billion, according to the balance sheet released on Thursday (15). The company had a loss of R $ 871 million in the same period last year.
Net revenue increased by 45% in the annual comparison, with the value reaching R $ 8.7 billion.
Adjusted Ebitda (earnings before interest, taxes, depreciation and amortization) had a record of R $ 3.5 billion, an increase of 124% in relation to the amount of R $ 1.5 billion in the third quarter of 2019. According to CSN, the leap is due to a better combination of volumes, prices and costs in all segments.
See the balance released last night by CSN.