AXIA Energia: New Deal Confirms Continuation Of Strategy

Multiplo Invest2.93K FollowersFollow5ShareSavePlay(9min)CommentsSummaryAXIA remains a buy as its privatization-driven turnaround continues to deliver S&P 500-beating returns and operational improvements.AXIA's asset swap with ISA Energia, yielding BRL 1.17 billion, further simplifies its structure and aligns with its strategy to optimize minority stakes.Despite mixed recent earnings, cost controls and non-recurring gains support future dividend potential and reinforce the investment thesis.AXIA trades at an attractive 7x EBITDA, with a potential 21% upside if multiples revert to the historical 8.5x average. Dilok Klaisataporn/iStock via Getty Images Investment Thesis I reiterate my recommendation to buy AXIA (AXIA) shares. This article is the continuation of my initial coverage thesis published on March 25, 2024, and my last article aboutThis article was written byMultiplo Invest2.93K FollowersFollowMore than 7 years of experience in equity analysis in LatAm. We provide our clients with in-depth research and insights to help them make informed investment decisions.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.