JP Morgan reshuffled its ratings on major Latin American telecom companies following second-quarter results, upgrading América Móvil to Neutral and cutting Vivo to Underweight, while maintaining Overweight calls on Tim and top pick Tigo.
The firm raised its rating on AMX, citing stronger cash flow prospects due to lower capital spending and a reduced regulatory overhang in Mexico.
JP Morgan lifted its price target on the stock to $21 from $15 and now assumes capex will stay at 14% of revenue. It expects operational free cash flow to grow 3.5% annually between 2026 and 2029.
Vivo was downgraded to Underweight on valuation concerns and potential downside to consensus earnings estimates.
JP Morgan sees about 7% risk to both 2025 and 2026 profit forecasts and noted Vivo now trades at the highest multiple among mature LatAm telecom peers.
Its new price target is R$28.50, up slightly from R$26, but the stock is seen as relatively expensive.
Tim remains Overweight, with the firm arguing the market undervalues its growth potential and improved fundamentals post-consolidation in Brazil’s mobile sector.
JP Morgan set a new price target of R$24.50, citing better spectrum assets and improved corporate governance.
Source :
https://www.investing.com/news/stock-market-news/jpm-shifts-latam-telco-rating-upgrades-america-movil-4181292
