BTG Pactual reiterated a buy recommendation for Simpar (SIMH3) on Friday, maintaining a 12-month price target of R$6.46. The firm cited accelerating growth at CS Infra, Simpar's concessions arm, which reported a 135% year-over-year increase in second-quarter Ebitda to R$191 million.
CS Infra's revenue rose 125% to R$347 million in the same period, while net income climbed 190% to R$90 million. The unit's return on invested capital improved to 21%, up 8.1 percentage points from the prior year. BTG Pactual highlighted the company's rapid expansion, noting CS Infra has consolidated 14 operations across five verticals—environmental, social, mobility, ports, and highways—within three years.
The firm also emphasized CS Infra's selective bidding strategy, evaluating 33 of 150 opportunities, modeling 21, and winning five concessions that require a minimum real return of 14%. Debt financing is expected to cover 70% to 80% of investments in new projects.
Analysts project CS Infra's Ebitda to reach R$524 million by 2029, a 174% increase from current levels. The forecast incorporates the addition of assets such as the port in Amapá and the Rota da Integração highway. BTG Pactual also noted the mid-2027 milestone when seven of the 40 schools in Paraná under CS InfraSocial are expected to begin operations.
Simpar shares traded 0.15% lower at R$6.52 at 16:05 local time.
