Industries – Agribusiness: Second

In second place for a second year running is BTG Pactual’s Thiago Duarte. The São Paulo–based analyst believes the sector is poised to outperform. “We expect sugar and ethanol companies’ fundamentals to improve, owing to better ethanol pricing and higher sugar cane availability, over the next couple of years,” he says. “This will translate into stronger operating momentum.” The analyst is urging clients to invest in “vertically integrated, diversified players,” Duarte adds. Cosan, a producer of biofuels, ethanol and sugar that is headquartered in São Paulo, is one example. “Our estimates suggest that Cosan remains a valuation rerating story on the back of growing cash flows as the company concludes the ongoing investment cycle,” he explains. — Leslie Kramer