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ubs downgrades engie brasil stock to sell citing financial challenges

UBS has downgraded Engie Brasil Energia SA from Neutral to Sell, lowering its price target from R$50.00 to R$38.00 due to concerns over a projected internal rate of return below the coverage average and potential negative impacts on renewable generation assets. The sale of a 15% stake in TAG is expected to yield lower results, and high capital expenditures for new transmission lines may constrain short-term dividend yields or increase leverage. Despite these challenges, the company's P/E ratio of 7.9 suggests it may be undervalued, and it maintains a dividend yield of 3.11%, having paid dividends for 24 consecutive years.
20:54 11.11.2024
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