Jefferies initiated coverage of Compass Gas e Energia with a "buy" rating and a price target of 37 reais per share, representing a 38% premium to the stock's price of 26.85 reais.
The bank values the company on a blended 7.7x EV/EBITDA multiple against 2026 estimates, with 8x for regulated gas distribution units and 5x for its Edge trading and infrastructure arm.
This compares to a current trading multiple of 6.4x EV/EBITDA, an approximately 11% discount to the Brazilian utilities median of 7.2x, according to Jefferies data.
"The market undervalues Compass' robust free cash flow, growth, and ability to capture share in liberalized markets," the brokerage said.
Compass Gas, 58% owned by Cosan, holds a 45% share of Brazil's gas distribution market through Comgás, which contributes roughly 70% of group EBITDA.
Jefferies forecasts revenue of 17.46 billion reais in 2026 and EBITDA of 5.07 billion reais.
