Cemig initiated with a Sector Perform at Scotiabank

Scotiabank initiated coverage of Cemig (CIG) with a Sector Perform rating and R$12.50 price target . Cemig, an integrated energy utility company owned by the state of Minas Gerais, has faced challenges with privatization because of a lack of political support, says the analyst. While Cemig has improved its operational performance and divested several non-core assets, leading to a generous distribution of dividends, the firm believes this trend is “unsustainable,” the analyst tells investors.