We are keeping our Buy recommendation on Companhia Energetica de Minas Gerais, or CEMIG (CIG). The company posted positive results for the second quarter of 2008, and the short-to-medium term outlook remains promising as demand for electricity in Brazil keeps growing.
We believe that the company will also benefit from the upgrade of the Brazilian Electric Sector by Moody's. Moreover, we have a positive outlook for the Brazilian economic environment in the short term, despite a less benign monetary policy.
Further, we believe that the tariff correction in 2009 will be quite encouraging. Finally, CEMIG has a solid dividend payout and an attractive
valuation.
Read the full analyst report on CIG
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