Argentina Utility Stocks Face Gloomy Outlook as Downgrades Mount
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The outlook for Argentina’s energy companies has worsened as President Mauricio Macri’s rout in a primary election over the weekend has raised concerns about the return of more intervention in utility prices.
Analysts at Morgan Stanley and BTG Pactual cut their ratings on some of Argentina’s largest energy companies. Bruno Montanari and Miguel Rodrigues of Morgan Stanley downgraded Pampa Energia SA and Central Puerto to equal-weight from overweight and Transportadora de Gas del Sur SA to underweight from equal-weight. Their price targets are under review.