CEMIG Remains Undervalued

Tags: cig
5 Dec 4:00am
Posted by ZacksResearch
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We are keeping our Buy recommendation on Companhia Energetica de Minas Gerais, or CEMIG (CIG). The company posted positive results for the third quarter of 2008, and the short-to-medium term outlook still remains promising as demand for electricity in Brazil keeps growing.

Despite a global credit crunch, we still have a reasonably positive outlook for the Brazilian economy in the short term. Our positive view stems from the growing demand for electricity in Brazil. Moreover, we believe that the tariff correction in 2009 will be quite encouraging.

Finally, CEMIG has a solid dividend payout, and we believe that the stock is quite undervalued when compared to its high net tangible book value.

Read the full analyst report on CIG




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