BTG recommends tactical buy for CSN

On 8 September, BTG Pactual recommended a tactical buy position on shares of Companhia Siderúrgica Nacional. The note marks a shift from the bank's previous cautious stance, which was driven by persistently high leverage and weak free cash flow generation.

BTG stated that while structural challenges remain, market confidence in incoming CEO Fabio Schvartsman could lift share prices in the short term before operational results appear. The bank directed the tactical recommendation toward investors with shorter horizons and tolerance for execution risk.

The bank identified the sale of CSN Cimentos as Schvartsman's first major credibility test. CSN has around 40 days to select the best bid, with the transaction potentially concluding by November. CSN also plans to sell stakes in infrastructure and energy, and seek a strategic partner for its steel business in the future.

CSN targets overall debt reduction between R$ 18 billion and R$ 20 billion. BTG noted that the market may begin pricing in lower leverage before the plan finishes execution.