Goldman Sachs analyst Bruno Amorim downgraded Rumo to Neutral from Buy with a price target of R$26, down from R$29. The analyst is citing investor concerns with severe climate conditions seen lately in Brazil, partially owing to the El Nino phenomena and the potential impacts for the soybean and corn crops in 2024. The firm further notes that freight prices might be peaking after a couple of strong years, with the weak and still uncertain crop outlook in 2024 also potentially setting up Rumo for a weaker unit revenue environment during 2025 price negotiations.
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