December 14, 2012 / 12:05 PM / 5 years ago

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

Analysts at Credit Suisse Group cut the recommendation on preferred shares of Brazilian steelmaker Usinas Siderúrgicas 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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