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Companhia Energetica Minas Gerais (NYSE:CIG) was downgraded by Zacks from an “outperform” rating to a “neutral” rating in a research report issued to clients and investors on Monday. They currently have a $8.25 price target on the stock. Zacks‘s target price suggests a potential upside of 4.30% from the company’s current price.

Zacks’ analyst wrote, “CEMIG’s net income increased 52.1% year over year in first-quarter 2014 with earnings of R$0.47 per American Depository Receipt (ADR). Revenues grew 30% backed by sales increase to end customers. Electricity sold to final consumers was up 10.7%. The company anticipates benefiting from stake acquisitions in Madeira and Retiro Baixo plant in the quarters ahead. The tariff hike for Cemig D will compensate for the increased expenses from the purchase of electricity generated from thermoelectric plants. Also, the payments of dividends and interest in equity will increase shareholders’ return. However, rising operating expenses, governmental interference and dependence on hydro sources for electricity might prove to be potential headwinds. Thus, we maintain a Neutral recommendation on CEMIG.”

Separately, analysts at Goldman Sachs initiated coverage on shares of Companhia Energetica Minas Gerais in a research note on Wednesday, March 26th. They set a “buy” rating on the stock.

Shares of Companhia Energetica Minas Gerais (NYSE:CIG) traded up 0.06% on Monday, hitting $7.915. The stock had a trading volume of 1,580,940 shares. Companhia Energetica Minas Gerais has a one year low of $5.23 and a one year high of $7.99. The stock’s 50-day moving average is $7.39 and its 200-day moving average is $6.4. The company has a market cap of $9.959 billion and a P/E ratio of 6.38.

Companhia Energetica de Minas Gerais Cemig is a Brazil-based holding company primarily engaged in the electricity sector.

To view Zacks’ full report, visit Zacks’ official website.

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