Cemig initiated with a Sell at Goldman Sachs

Goldman Sachs analyst Bruno Amorim initiated coverage of Cemig with a Sell rating and $2.10 price target as part of a broader research note launching coverage on Brazil utilities names. The covered companies are trading at an attractive average valuation with a meaningful opportunity for capex deployment at attractive returns, though Cemig – despite its recent efficiency gains 0 is unlikely to be able to meaningfully outperform regulatory EBITDA in the power distribution business, the analyst tells investors in a research note.