STXNEWS LATAM-Credit Suisse cuts Usiminas to 'underperform' as gains overdone

Fri Dec 14, 2012 7:01am EST

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Analysts at Credit Suisse Group cut the recommendation on preferred shares of Brazilian steelmaker Usinas Sider├║rgicas de Minas Gerais SA to "underperform" from "neutral," saying recent gains in the price of the stock are probably overdone. A team of analysts led by Ivano Westin also cut the price target for the stock to 9 reais from 12.20 reais.

The stock could underperform in coming months on the back of weak fourth-quarter results, downward pressure on local flat steel prices, uncertainty over a plan to renegotiate terms of the company's debt and the impact of the sale of ThyssenKrupp AG's Brazilian slab-making unit on the domestic flat steel market.

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