Zacks upgraded shares of Basic Sanitation Company of the State of Sao Paulo – SABESP (NYSE:SBS) from an underperform rating to a neutral rating in a report issued on Thursday, Stock Ratings Network reports. They currently have $11.00 target price on the stock.
Zacks’ analyst wrote, “SABESP is making earnest efforts and investments to achieve its targets of over 1.3 million new water connections and 1.7 million new sewage connections by 2019. Recently, the company signed an agreement to control the water and sewage services of Diadema for the next 30 years. Talking of the company’s financial performance, second quarter 2013 results were quite impressive. Earnings per ADR at US$0.26 registered 18.2% increase and revenue grew 13.0% on higher water supply, sewage collection and treatment in the quarter. Considering all these, we upgraded SABESP from Underperform to Neutral recommendation. The upgrade has been restricted to a neutral view due to near-term concerns arising out of rising cost of sales and services as well as operating expenses, debt levels, political interference among others. In the second quarter 2013, cost of sales and services increased 10.5%, operating expenses rose by 30.8% and loans and financings reflected 3.4% sequential increase.”
Zacks has also modified their ratings on a number of other utilities stocks in the few days. The firm upgraded shares of Perfect World Co Ltd from an underperform rating to a neutral rating. The firm now has a $20.90 price target on that stock. Also, Zacks downgraded shares of Farmers Capital Bank Corp from an outperform rating to a neutral rating. Their analysts now have a $23.90 price target on that stock. Finally, Zacks reiterated its neutral rating on shares of Methanex Corporation. They have a $53.00 price target on that stock.
Basic Sanitation Company of the State of Sao Paulo – SABESP (NYSE:SBS) traded up 0.40% during mid-day trading on Thursday, hitting $10.16. 1,186,734 shares of the company’s stock traded hands. Basic Sanitation Company of the State of Sao Paulo – SABESP has a 52-week low of $8.25 and a 52-week high of $16.35. The stock’s 50-day moving average is $9.22 and its 200-day moving average is $12.1. The company has a market cap of $6.944 billion and a price-to-earnings ratio of 7.09.
Separately, analysts at Standpoint Research upgraded shares of Basic Sanitation Company of the State of Sao Paulo – SABESP (NYSE:SBS) from a hold rating to a buy rating in a research note to investors on Tuesday, June 25th.
Companhia de Saneamento Basico do Estado de Sao Paulo-SABESP is a mixed capital company, majority-owned by the State of Sao Paulo.
To view Zacks’ full report, visit www.zacks.com
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