Companhia de Saneamento Basico (SBS) Stock Rating Lowered by Zacks Investment Research

Companhia de Saneamento Basico (NYSE:SBS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Tuesday.

According to Zacks, “In the last three months, SABESP's American Depository Receipts (ADR) underperformed the industry. We believe that the company is exposed to risks arising from governmental interference and dependence on electricity as a source of energy. Moreover, the company's higher debt levels, if unchecked, will inflate its financial obligations, posing serious threats to its profitability. Also, any unwarranted rise in operating expenses as well as adverse impacts from currency translation will impact its margins and hence dent its profitability. In the third quarter 2017, the company's revenues were down 5.6% year over year due to 35.1% decline in construction revenues as a result of lower investments in municipalities served. The stock's earnings estimates for 2018 decreased in the last 60 days.”

Other equities research analysts also recently issued reports about the stock. HSBC raised shares of Companhia de Saneamento Basico from a “hold” rating to a “buy” rating in a research note on Wednesday, November 22nd. ValuEngine raised shares of Companhia de Saneamento Basico from a “hold” rating to a “buy” rating in a research note on Tuesday, November 14th. UBS Group downgraded shares of Companhia de Saneamento Basico from a “buy” rating to a “neutral” rating in a research note on Thursday, November 2nd. JPMorgan Chase & Co. raised shares of Companhia de Saneamento Basico from a “neutral” rating to an “overweight” rating in a research note on Monday, November 27th. Finally, Scotiabank raised shares of Companhia de Saneamento Basico from an “underperform” rating to a “sector perform” rating in a research note on Monday, October 9th. Two research analysts have rated the stock with a sell rating, four have given a hold rating and five have assigned a buy rating to the company. The stock presently has a consensus rating of “Hold”.

Shares of Companhia de Saneamento Basico (NYSE:SBS) traded down $0.10 on Tuesday, reaching $10.51. 1,115,200 shares of the company were exchanged, compared to its average volume of 923,750. The stock has a market capitalization of $7,252.04, a P/E ratio of 8.08 and a beta of 1.85. The company has a debt-to-equity ratio of 0.61, a current ratio of 1.10 and a quick ratio of 1.07. Companhia de Saneamento Basico has a 1-year low of $8.15 and a 1-year high of $11.33.

Hedge funds have recently bought and sold shares of the business. Raymond James Trust N.A. raised its stake in shares of Companhia de Saneamento Basico by 0.9% during the second quarter. Raymond James Trust N.A. now owns 10,474 shares of the utilities provider’s stock worth $100,000 after acquiring an additional 91 shares in the last quarter. Ameriprise Financial Inc. purchased a new position in shares of Companhia de Saneamento Basico during the second quarter worth approximately $117,000. Virtu KCG Holdings LLC purchased a new position in shares of Companhia de Saneamento Basico during the second quarter worth approximately $119,000. Institute for Wealth Management LLC. purchased a new position in shares of Companhia de Saneamento Basico during the second quarter worth approximately $140,000. Finally, ETRADE Capital Management LLC raised its stake in shares of Companhia de Saneamento Basico by 2.6% during the second quarter. ETRADE Capital Management LLC now owns 17,462 shares of the utilities provider’s stock worth $166,000 after acquiring an additional 440 shares in the last quarter. 15.97% of the stock is currently owned by hedge funds and other institutional investors.

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About Companhia de Saneamento Basico

Companhia de Saneamento Basico do Estado de Sao Paulo-SABESP is a water and sewage service provider. The Company provides water and sewage services to a range of residential, commercial, industrial and governmental customers in over 360 municipalities in the state of Sao Paulo, including the city of Sao Paulo.

Analyst Recommendations for Companhia de Saneamento Basico (NYSE:SBS)

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