Companhia Energetica de MinasGerais (NYSE: CIG)‘s stock had its “neutral” rating reiterated by Zacks Investment Research in a report issued on Monday. They currently have a $21.00 price target on the stock.
Zacks’ analyst wrote, “CEMIG posted third quarter results with its net income marginally down by 0.37% year over year on the back of an 11% escalation in total revenue. Rise in electricity demand in Brazil and a consequent increase of prices appear favorable for the stock going forward. Besides, its efficient operations, strong balance sheet, enviable market share position make Cemig an attractive valuation compared with its peers. However, rising operating expenses which grew by 7% pose a major hurdle to growth. Moreover, competitive pressures arising from the risk of natural water resource constraint offset the stock’s favorability and compel us to remain on the sidelines, maintaining a Neutral recommendation on the stock.”
Separately, analysts at Standpoint Research downgraded shares of Companhia Energetica de MinasGerais from a “buy” rating to a “hold” rating in a research note to investors on Monday. They now have a $22.00 price target on the stock.
Companhia Energetica de Minas Gerais (CEMIG) is a Brazil-based electric utilities company. The Company is engaged in the generation, transmission and distribution of electricity. The Company is also engaged in other businesses, such as natural gas distribution in Minas Gerais, through its subsidiary, Companhia de Gas de Minas Gerais (Gasmig); telecommunications, through Cemig Telecomunicacoes S.A., which focuses on providing customers in the industrial, service and commercial sectors with energy solutions, and implementation and management of systems for electricity sector companies (generation, distribution and transmission), through its subsidiary Axxiom Solucoes Tecnologicas S.A.
Companhia Energetica de MinasGerais remained flat at $19.66 during trading on Monday. Companhia Energetica de MinasGerais has a 1-year low of $14.03 and a 1-year high of $21.09. The stock has a 50-day moving average of $17.97 and a 200-day moving average of $17.48. The company has a market cap of $13.411 billion and a price-to-earnings ratio of 9.94.