BBI raises Brazil real rate forecast to 8%, cuts utility price targets

Bradesco BBI raised its long-term real interest rate forecast for Brazil to 8% following the elections, prompting downward revisions to utility stock price targets. The bank maintains recommendations on Eneva, Axia, Sabesp, and Copel but sees reduced attractiveness in the sector. This signals a higher discount rate environment for Brazilian equities, pressuring rate-sensitive utilities.

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