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Readers of this space know that the investment thesis offered here favors large-cap companies with demonstrated business models and who have a competitive advantage in established markets, preferably with a favorable global trend as a support. And along this line, Companhia de Saneamento Basico do Estado de Sao Paolo, or SABESP, is worth an evaluation.

SABESP (NYSE: SBS) is Brazil's largest water company, serving 22.7 million people. SBS provides water via about 6.6 million connections. The company also offers sewage services through about 4.8 million connections and more than 400 treatment plants. The state of Brazil owns a 50.3% stake in SBS.

Analysts really like SBS's leadership position in Sao Paulo water services, and customer growth prospects: the company aims to increase its customer base by 2 million during 2007-2010. Further, Brazil's solid economic growth provides an added macroeconomic tailwind. The Reuters F2007/F2008 EPS consensus estimates for SBS are $4.76/$4.96.

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Brazil's SABESP demonstrates that water always has a market originally appeared on BloggingStocks on Fri, 18 Jan 2008 16:20:00 EST. Please see our terms for use of feeds.

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