Analyst Gustavo Faria of Bank of America Securities maintained a Buy rating on Companhia Paranaense de Energia Pfd (ELP – Research Report), with a price target of $12.00.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
Gustavo Faria has given his Buy rating due to a combination of factors including the company’s ongoing post-privatization turnaround and effective cost-cutting measures. Despite a slight miss in the fourth quarter operational results, mainly due to lower-than-expected performance in the power generation unit, the company managed to partially offset this with strong cost control.
Additionally, Companhia Paranaense de Energia has announced new energy sales contracts and an additional dividend yield, which are seen as positive indicators for future performance. The company’s potential revision of its dividend policy could further enhance its attractiveness, potentially leading to a higher dividend yield in the coming years. These factors, along with the high quality of its power distribution assets, support the Buy rating with a price objective of 12.00 BRL.