Cemig downgraded to Neutral from Buy at BofA

BofA downgraded Cemig to Neutral from Buy with a price target of $2.60, down from $3.20, citing rising concerns about recent political noise. According to news, the possibility of Cemig’s control to be transferred to the federal government was recently presented by Brazil’s Senate Speaker and even though BofA sees challenges for such a transaction to move forward, it thinks this possibility will remain as an overhang to the stock.