CPFL Energia S.A.’s (CPFL) 1Q 09 revenues were in line with our forecast, while earnings fell short of expectations. However, Brazilian regulators have permitted CPFL to raise its average tariff by 21.6% as of April 2009, which should reinforce the top- and bottom-lines throughout FY 2009 despite flat prospects for volume growth over the same period. Considering this, we continue to see upside potential at current levels and therefore maintain our 6-12 month BUY rating for the…

CPFL Energia has announced that its plans to invest BRL5,000 mn in its operations by FY 2013. The company plans to invest BRL1,235 in FY 2009, 4.8% higher than capital expenditure of FY 2008. However, considering the company’s weaker than anticipated 4Q 08 profitability, we intend to significantly reduce our estimates and target prices in our next update report. As a result, although the target price derived in our…

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CPFL Energia S.A.’s (CPFL) 3Q 08 revenues were below our estimate due to lower-thanexpected volume growth and average tariffs. Margins were also below our expectations due to both lower-than-expected revenues and increased operating costs, particularly costs of electricity purchased for resale and electricity network usage charges. Going forward, we expect CPFL’s top line to be impacted by a downturn in…