UBS analyst Giuliano Ajeje downgraded Engie Brasil (EGIEY) to Sell from Neutral with a price target of R$38, down from R$50. The firm cites the company’s exposure to curtailment impacts on its recent renewable generations assets for the downgrade. The analyst believes Engie’s high capex on its new transmission lines could either hinder its dividend yields in the short-term, reducing the attractiveness of the stock’s carry, or increase its leverage.
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