Barclays Reiterates an 'Underweight' on NII Holdings (NIHD); Even A Complete Change in Strategy Can't Help
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Price: $7.06 -0.84%
Rating Summary:
6 Buy, 5 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 24 | Down: 17 | New: 24
Rating Summary:
6 Buy, 5 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 24 | Down: 17 | New: 24
Trade NIHD Now!
Barclays reiterates an 'Underweight' on NII Holdings (NASDAQ: NIHD) price target of $7.00 (from $12.00).
Analyst, Vera Rossi, said, "Even with the recent underperformance of NIHD, we still remain bearish. Given declining operating margins and cash flow, both the equity and credit face significant challenges. We believe this will compel management to reconsider its strategy and focus its investments in Mexico, and halt its 3G deployment in other countries (Brazil, Argentina, Peru and Chile)."
Rossi cuts FY12 EPS estimate from (0.37) to (1.24) and FY13 from $0.58 to $0.32. Rossi is also cautious on NIHD Bonds, saying continued strain on cash flow which would probably lead to raising leverage, plus less overall interest will be too much of a challenge despite a complete change in strategy (by the company...which is needed).
For an analyst ratings summary and ratings history on NII Holdings click here. For more ratings news on NII Holdings click here.
Shares of NII Holdings closed at $6.60 yesterday, with a 52 week range of $5.65-$39.49.
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Analyst, Vera Rossi, said, "Even with the recent underperformance of NIHD, we still remain bearish. Given declining operating margins and cash flow, both the equity and credit face significant challenges. We believe this will compel management to reconsider its strategy and focus its investments in Mexico, and halt its 3G deployment in other countries (Brazil, Argentina, Peru and Chile)."
Rossi cuts FY12 EPS estimate from (0.37) to (1.24) and FY13 from $0.58 to $0.32. Rossi is also cautious on NIHD Bonds, saying continued strain on cash flow which would probably lead to raising leverage, plus less overall interest will be too much of a challenge despite a complete change in strategy (by the company...which is needed).
For an analyst ratings summary and ratings history on NII Holdings click here. For more ratings news on NII Holdings click here.
Shares of NII Holdings closed at $6.60 yesterday, with a 52 week range of $5.65-$39.49.
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