Investor Day Takeaways: A Multi-Utility Platform Trading at an Unwarranted Discount

Research evidence excerpt

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M

Idea

August 21, 2026 02:14 AM GMT

Equatorial Energia | Latin America

Morgan Stanley C.T.V.M. S.A.+

Fernando P Amaral

Equity Analyst

Investor Day Takeaways: A

Multi-Utility Platform Trading at

an Unwarranted Discount

Key Takeaways

Bruno Oyamata, CFA

Research Associate

~22% in sanitation, with long‑term optionality in other infrastructure verticals.

Organic growth & cost control remain key focuses, with elevated capex and

disciplined opex expected to improve service quality.

Equatorial Energia SA (EQTL3.SA, EQTL3 BZ)

Brazil Electric Utilities | Brazil

Stock Rating

Industry View

Price target

Shr price, close (Aug 19, 2026)

Mkt cap, curr (mm)

52-Week Range

Fiscal Year Ending

Multi‑utility platform emerging: ~74% of EBITDA from power distribution &

EPS (R$)**

Overweight

No Rating

R$50.00

R$34.83

R$43,852

R$46.32-33.20

12/25 12/26e 12/27e 12/28e

1.33

2.12

3.71

3.85

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

framework

** = Based on consensus methodology

e = Morgan Stanley Research estimates

Distribution: growth remains compelling with ~R$20bn of invested capex yet to

enter tariffs, supportive regulation, and additional efficiency opportunities.

Sanitation: EQTL’s priority is unlocking value at SBSP and CSMG, while retaining

optionality to deploy capital into a sizable sanitation concession pipeline.

Remain OW EQTL3: unwarranted discount offering ~13.5% real equity IRR, with

exposure to multiple positive catalysts (e.g., regulatory agenda & potential

M&As).

Equatorial hosted its Investor Day in São Paulo where management provided

updates on strategy, operations, and sector trends, followed by group meetings with

business units' directors and managers. Below, we highlight the main takeaways with

additional details inside the report and on the presentation.

Multi-utility platform expands growth optionality through accretive capital

allocation. Management frames EQTL as a national multi-utility platform, with

power distribution and sanitation as core verticals and potential expansion into

other infrastructure segments that either remain under continuous evaluation

…