Zacks Investment Research lowered shares of Companhia de Saneamento Basico (NYSE:SBS) from a hold rating to a sell rating in a research note issued to investors on Tuesday morning.

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.”

A number of other analysts have also issued reports on SBS. Scotiabank raised Companhia de Saneamento Basico from an underperform rating to a sector perform rating in a research report on Monday, October 9th. ValuEngine raised Companhia de Saneamento Basico from a hold rating to a buy rating in a report on Tuesday, November 14th. UBS Group lowered Companhia de Saneamento Basico from a buy rating to a neutral rating in a report on Thursday, November 2nd. JPMorgan Chase & Co. raised Companhia de Saneamento Basico from a neutral rating to an overweight rating in a report on Monday, November 27th. Finally, HSBC raised Companhia de Saneamento Basico from a hold rating to a buy rating in a report on Wednesday, November 22nd. Two analysts have rated the stock with a sell rating, four have issued a hold rating and five have issued a buy rating to the company. The stock has an average rating of Hold.

Shares of Companhia de Saneamento Basico (NYSE:SBS) traded down $0.10 during midday trading on Tuesday, hitting $10.51. The stock had a trading volume of 1,115,237 shares, compared to its average volume of 923,750. Companhia de Saneamento Basico has a twelve month low of $8.15 and a twelve month high of $11.33. The stock has a market capitalization of $7,310.00, a price-to-earnings ratio of 8.21 and a beta of 1.85. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.07 and a current ratio of 1.10.

A number of institutional investors have recently made changes to their positions in the stock. Raymond James Trust N.A. increased its holdings in Companhia de Saneamento Basico by 0.9% in the second quarter. Raymond James Trust N.A. now owns 10,474 shares of the utilities provider’s stock valued at $100,000 after buying an additional 91 shares during the last quarter. ETRADE Capital Management LLC increased its holdings in Companhia de Saneamento Basico by 2.6% in the second quarter. ETRADE Capital Management LLC now owns 17,462 shares of the utilities provider’s stock valued at $166,000 after buying an additional 440 shares during the last quarter. Eqis Capital Management Inc. increased its holdings in Companhia de Saneamento Basico by 13.6% in the third quarter. Eqis Capital Management Inc. now owns 40,670 shares of the utilities provider’s stock valued at $425,000 after buying an additional 4,875 shares during the last quarter. Nwam LLC increased its holdings in Companhia de Saneamento Basico by 11.9% in the third quarter. Nwam LLC now owns 60,085 shares of the utilities provider’s stock valued at $628,000 after buying an additional 6,400 shares during the last quarter. Finally, Principal Financial Group Inc. increased its holdings in Companhia de Saneamento Basico by 1.4% in the third quarter. Principal Financial Group Inc. now owns 488,580 shares of the utilities provider’s stock valued at $5,111,000 after buying an additional 6,800 shares during the last quarter. 15.97% of the stock is owned by hedge funds and other institutional investors.

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Companhia de Saneamento Basico Company Profile

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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