Financial institutions issue cautious ratings for Cemig and Marcopolo

Major financial institutions have issued cautious outlooks for Brazilian companies Cemig and Marcopolo.

JPMorgan has reiterated a sell recommendation for Cemig (CMIG4), maintaining a price target of R$ 13 for the end of 2027. Despite the company's operational efficiency, analysts cite uncertainties regarding regulatory discussions and the future of privatization following state elections. The bank noted that the privatization argument has lost momentum after two consecutive terms without concrete progress.

Meanwhile, XP Investimentos downgraded Marcopolo (POMO4) from a buy to a neutral rating, adjusting its 2027 price target to R$ 5. The downgrade follows a period of weak earnings momentum and production levels that have recently fallen approximately 15% below the same quarter of the previous year. Analysts expect compressed multiples and lower profitability through 2028 due to factors such as input cost inflation and international market weakness.