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Companhia Energetica Minas Gerais (NYSE:CIG)‘s stock had its “neutral” rating restated by Zacks in a research report issued on Monday. They currently have a $9.00 target price on the stock. Zacks‘s price objective would suggest a potential upside of 4.29% from the company’s current price.

Zacks’ analyst wrote, “CEMIG’s net income soared 45% year over year in second-quarter 2014. Earnings came in at $0.30 per ADR. Revenues grew 38% due to 4% increase in electricity sold to final consumers and a 14% hike in the average price. Operating expenses rose 27%, partially offsetting top-line growth. Stake acquisitions in Madeira and Retiro Baixo plant will enhance CEMIG’s generation capacity going forward. In addition, the company has signed agreements for stake increase in Gasmig and construction of 25 wind farms. Also, the payment 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 for the company. Thus, we maintain a Neutral recommendation on CEMIG.”

Companhia Energetica Minas Gerais (NYSE:CIG) traded down 0.46% during mid-day trading on Monday, hitting $8.59. The stock had a trading volume of 1,177,735 shares. Companhia Energetica Minas Gerais has a one year low of $5.23 and a one year high of $9.02. The stock has a 50-day moving average of $8.4 and a 200-day moving average of $7.25. The company has a market cap of $10.809 billion and a price-to-earnings ratio of 6.84.

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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