Usiminas downgraded to Neutral from Buy at Goldman Sachs

Goldman Sachs analyst Marcio Farid downgraded Usiminas to Neutral from Buy with an R$8 price target. The firm noted that Usiminas’ operational performance is unlikely to improve before Q1 of next year and to be “limited by ongoing challenges and a need to invest on its coking plants.” Additionally, earnings have deteriorated faster than Goldman expected and the firm sees capex remaining elevated, “putting pressure on free cash generation.” Goldman sees positive catalysts in the short-to-medium-term as unlikely.