We are maintaining our Outperform rating on CPFL Energia S.A. (CPL). The company posted in-line results for the third quarter of 2009, despite non-recurring items.
The company’s outlook for the short-to-medium term remains positive, mainly considering the more relaxed monetary policy in Brazil and the growing demand for electricity, even though the company is still contending with a difficult business environment around the world.
Finally, CPL has a solid dividend payout and its valuation appears to be highly attractive mainly considering the non-cyclical nature of the company.Zacks Investment Research
