Companhia de Saneamento Basico do Estado de Sao Paulo (NYSE:SBS) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Thursday.

According to Zacks, “SABESP's long-term prospects remain bright, as growth in the Brazilian population is leading to higher demand for water and sewage services. The company aims to achieve 95% sewage coverage ratio and add 1.4 million new sewage connections by 2020 and nearly 1 million water connections by 2021. Also, it has planned investments worth R$12.5 billion for 2016-2020. In third-quarter 2016, the company recorded net income of R$573.9 million versus net loss of R$580.1 million in the year-ago quarter. Earnings per ADR came in at $0.26, ahead of the Zacks Consensus Estimate of $0.17. However, SABESP is not immune to risks arising from higher expenses, foreign currency translation, governmental interference, high debt levels and dependence on electricity as a source of energy.”

SBS has been the subject of a number of other reports. JPMorgan Chase & Co. cut shares of Companhia de Saneamento Basico do Estado de Sao Paulo from an “overweight” rating to a “neutral” rating in a research note on Friday, July 29th. Scotiabank upgraded shares of Companhia de Saneamento Basico do Estado de Sao Paulo from an “underperform” rating to a “sector perform” rating in a research note on Monday, November 14th. Finally, Janney Montgomery Scott cut shares of Companhia de Saneamento Basico do Estado de Sao Paulo from a “buy” rating to a “neutral” rating in a research note on Wednesday, August 3rd.

Companhia de Saneamento Basico do Estado de Sao Paulo (NYSE:SBS) opened at 8.36 on Thursday. The company has a market capitalization of $5.71 billion, a P/E ratio of 7.89 and a beta of 1.97. The stock has a 50 day moving average of $9.75 and a 200-day moving average of $8.83. Companhia de Saneamento Basico do Estado de Sao Paulo has a 52-week low of $3.98 and a 52-week high of $10.55.

Hedge funds have recently modified their holdings of the company. Raymond James Trust N.A. boosted its stake in shares of Companhia de Saneamento Basico do Estado de Sao Paulo by 0.9% in the second quarter. Raymond James Trust N.A. now owns 16,114 shares of the company’s stock worth $144,000 after buying an additional 142 shares during the last quarter. M&T Bank Corp raised its position in shares of Companhia de Saneamento Basico do Estado de Sao Paulo by 1.8% in the third quarter. M&T Bank Corp now owns 11,358 shares of the company’s stock worth $105,000 after buying an additional 197 shares during the period. Global X Management Co. LLC raised its position in shares of Companhia de Saneamento Basico do Estado de Sao Paulo by 5.2% in the third quarter. Global X Management Co. LLC now owns 25,193 shares of the company’s stock worth $233,000 after buying an additional 1,252 shares during the period. Connable Office Inc. raised its position in shares of Companhia de Saneamento Basico do Estado de Sao Paulo by 5.6% in the second quarter. Connable Office Inc. now owns 32,020 shares of the company’s stock worth $287,000 after buying an additional 1,688 shares during the period. Finally, Van ECK Associates Corp raised its position in shares of Companhia de Saneamento Basico do Estado de Sao Paulo by 17.3% in the second quarter. Van ECK Associates Corp now owns 13,372 shares of the company’s stock worth $120,000 after buying an additional 1,975 shares during the period. Institutional investors and hedge funds own 16.07% of the company’s stock.

Companhia de Saneamento Basico do Estado de Sao Paulo 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.

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