丰业银行上调LatAm电信旗下TIGO和TIMB评级，削减TEO

2024-09-21 02:04

Analysts at Scotiabank updated ratings for its Latin America telecommunication stocks and upgraded Millicom International (NASDAQ:TIGO) and TIM S.A. (NYSE:TIMB) to "sector outperform" while cutting Telecom Argentina (NYSE:TEO) to "sell."
Commenting on the LatAm trends for telecos over time, they said as broadband penetration hits saturation levels in key markets such as Argentina, Brazil, Chile, or Mexico, organic growth will increasingly rely upon taking customers away from rivals.
On TIGO, the research firm noted the stock has done little since the conclusion of the Atlas offering, but the free cash flow yield at 14.2% in USD is one of the sector’s highest. They think tower sales would provide substantial cash to launch "an aggressive buyback program."
On TIMB, they said the company is poised to continue benefiting from wireless consolidation, tower rationalization, and the future adoption of Supplemental Coverage from Space (SCS) services.
On TEO, they pointed out that a “macro rally” in the stock has driven valuation to irrational levels. "The near 50% rally in the share price since the August lows continues to show the significant volatility in Argentina’s ADRs, which we believe reflects more investors’ mood on the economy than company fundamentals," they said.
They also reiterated AST SpaceMobile (NASDAQ:ASTS) as their top choice, along with TIMB and TIGO.

More on AST SpaceMobile, Telecom Argentina, etc.