STXNEWS LATAM-UBS ups Brazil's CPFL to neutral after power rate cuts

Analyst Lilyanna Yang at UBS raised her recommendation on shares in Brazilian electricity holding company CPFL to "neutral" from "sell," after declines in industry shares on concern of higher-than-expected government-sponsored power rate cuts were overdone. Yang also removed the stock from UBS' Alpha Least Preferred list.

UBS continues to favor shares in rival Cemig over those of CPFL and Copel, all rated "neutral." In the meantime, the bank sees "downside risk" to its 42 reais a share price target for shares in Cesp because of concern that some expiring concessions might not be renewed, "but this is already reflected in the stock price in our view," Yang noted.