Sabesp completes EMAE merger: Sabesp stock sits 22.25 percent below its high

Published on 10/02/2026 at 04:21 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

XP sets a BRL 36.80 target for Sabesp stock through 2027 on September 3, 2026. Revenue rose 13.90 percent year over year.

Sabesp, BRSBSPACNOR5, Illustration mit AI erstellt.

Sabesp (BRSBSPACNOR5) completed the merger of EMAE shares, while withdrawal rights for dissenting shareholders run through October 19, 2026, according to InsightThread. SBSP3 stood at BRL 27.46 on September 30, 2026, leaving the share 22.25 percent below its BRL 35.32 52-week high on B3.

EMAE merger changes the structure

The transaction simplifies Sabesp's ownership structure around EMAE, a metropolitan water and energy company. The October 19, 2026 deadline gives dissenting investors a defined window to exercise withdrawal rights, according to InsightThread.

Sabesp's core operating picture is more mixed than the merger headline. Money Times reported second-quarter 2026 net revenue of BRL 10.20 billion, up 13.90 percent from the same quarter a year earlier, while net income reached BRL 1.46 billion.

Revenue growth meets execution risk

The company invested BRL 7.50 billion in the first half of 2026, an increase of 15.60 percent year over year, according to Money Times. That investment pace supports the expansion program, but it also keeps operating execution central to the equity story after the second-quarter earnings reaction.

XP maintained its Buy recommendation and set a BRL 36.80 price target for the end of 2027 in a report dated September 3, 2026, according to XP Investimentos. The target is 34.00 percent above BRL 27.46, calculated in the same currency, while the report identifies upcoming quarterly results and the tariff review as key tests for efficiency.

Next results date is November 5

Sabesp's next earnings report is scheduled for November 5, 2026, according to Investing.com. The company therefore enters the next reporting cycle with revenue growth, elevated investment and a measurable gap to its yearly high as the main figures for investors to track.