Dec. 14 (Bloomberg) -- Usinas Siderurgicas de Minas Gerais SA, the Brazilian steelmaker that rose 83 percent since mid-year, headed to its lowest close in three weeks after Credit Suisse Group AG recommended investors sell the stock after a recent rally.
Usiminas, as the Belo Horizonte, Brazil-based company is known, fell 5.3 percent to 11.46 reais at the close in Sao Paulo. The third-worst performer in the Brazilian benchmark Bovespa index today, closed at the lowest since Nov. 22.
Usiminas is the most expensive stock amid Latin America’s metals and mining companies and shares may decline about 26 percent from current levels, Credit Suisse analysts led by Ivano Westin in Sao Paulo said, after cutting their recommendation to the equivalent of sell from neutral. The stock may underperform on weaker-than-expected earnings, slower growth in Brazil and lower international steel prices, they said in a note to clients dated yesterday.
“The recent outperformance of the stock is excessive,” the analysts said in the note. “The market is overestimating the benefits of the turnaround.”
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