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Cosan Limited

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Cosan's long-term growth prospects appear bright, supported by its organic and inorganic growth initiatives. The company is expected to benefit from the Rumo-ALL merger. Also, it remains committed toward rewarding its shareholders. Despite solid long-term potential, the company's exposure to certain headwinds has been restricting its momentum in the near term. The company's international operations face risks from geo-political issues and foreign exchange variation. Also, unfavorable weather conditions can severely impact sugarcane production and subsequently hurt the company's crushing activities. Moreover, mounting operating costs and interest expense, if left unchecked, will hurt the company's profitability.

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