July 28 (Bloomberg) -- Light SA, Brazil’s second-biggest electricity distributor, fell the most in more than two months after having its recommendations cut at Banco BTG Pactual SA and Goldman Sachs Group Inc.
Shares dropped 2.5 percent to 28.19 reais at the close of Sao Paulo trading at 4:15 p.m. New York time, the most since May 17. It was the second-worst performer on the Bovespa index. The benchmark equity gauge rose 0.7 percent to 58,708.25.
Light was cut to “neutral” from “buy” at Goldman Sachs after it gained 14 percent this year through yesterday.
“From current levels we see less scope for the stock to outperform,” Goldman Sachs’s analysts Francisco Navarrette and Andre Gaeta wrote in a note to clients today.
The company, a unit of Cia. Energetica de Minas Gerais, was lowered to “neutral” from “buy” at BTG Pactual. Light’s higher leverage after the acquisition of Renova Energia SA may limit dividend distribution for the next two years, analysts including Antonio Junqueira wrote in a research note.
Light may issue 350 million reais ($224 million) of bonds in the domestic market to finance the purchase of Renova Energia, Chief Financial Officer Luiz Fernando Rolla said in an interview July 11.
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