Eletrobras initiated with a Buy at Goldman Sachs

Goldman Sachs initiated coverage of Eletrobras with a Buy rating and $10 price target. The analyst says Brazil utilities are trading at an attractive average valuation with a “meaningful opportunity” for capex deployment at attractive returns, especially in power distribution. Recently privatized companies Eletrobras and Copel have the possibility of delivering cost cuts and portfolio optimization, driving higher dividends in the upcoming year, the analyst tells investors in a research note.