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Companhia Paranaense de Energia (NYSE:ELP) was downgraded by Zacks from an “outperform” rating to a “neutral” rating in a note issued to investors on Monday. They currently have a $18.00 price objective on the stock. Zacks‘s price objective would suggest a potential upside of 4.65% from the company’s current price.

Zacks’ analyst wrote, “COPEL’s net income in second-quarter 2014 declined 1.3% year over year, with earnings coming in at $0.41 per ADR. Revenue grew 45% due to higher electricity sold to final consumers. However, this was more than offset by 56% increase in operating costs and expenses, leading to 610 basis points (bps) fall in operating margin. Based on these factors, we have currently downgraded our recommendation on COPEL from Outperform to Neutral. However, despite the poor results, long-term prospects for COPEL are bright. Huge infrastructural investments in Brazil are boosting demand for electricity. The company, in turn, is making efforts to capitalize on the escalating demand by improving its generation capacity. In this regard, acquisition of 49% stake in Voltalia’s wind farm complex is worth mentioning.”

Companhia Paranaense de Energia (NYSE:ELP) traded down 0.93% on Monday, hitting $17.04. 207,302 shares of the company’s stock traded hands. Companhia Paranaense de Energia has a 52-week low of $9.82 and a 52-week high of $17.48. The stock’s 50-day moving average is $16.29 and its 200-day moving average is $14.12. The company has a market cap of $4.663 billion and a price-to-earnings ratio of 9.01.

Companhia Paranaense de Energia (NYSE:ELP) is a Brazil-based holding company involved principally in the electrical energy sector.

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