Barclays on Latin America Telecom & Media: Initiation of coverage with Neutral View
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Up: 8 | Down: 5 | New: 26
Rating Summary:
4 Buy, 5 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays on Latin America Telecom & Media: Initiation of coverage with Neutral View
Barclays analyst, Vera Rossi, said, "We initiate coverage of the Latin America Telecom & Media sector with a Neutral view: Revenue growth has reached single digits; however, capex needs are still high due to the increase in network build outs to offer broadband and data services. In general, the companies are well capitalized with solid financials and positive free cash flow generation. Corporate governance has improved after the companies reduced the number of listed subsidiaries or classes of shares, minimizing the minority shareholder risk, especially in Brazil."
"Stock picks: We prefer companies with consistent records of good results, solid balance sheets and the ability to pay dividends and buy back shares while being well positioned to grow in broadband (mobile and fixed) or pay TV. We assign Overweight ratings on Telefonica Brasil (NYSE: VIV), America Movil (NYSE: AMX), TIM Participacoes (NYSE: TSU) and NII Holdings (Nasdaq: NIHD). We assign Equal Weight ratings on Megacable and TV Azteca. And we assign Underweight ratings on Televisa and Axtel. Stock picking within this group is important since stock performances have varied significantly in the past decade."
Barclays analyst, Vera Rossi, said, "We initiate coverage of the Latin America Telecom & Media sector with a Neutral view: Revenue growth has reached single digits; however, capex needs are still high due to the increase in network build outs to offer broadband and data services. In general, the companies are well capitalized with solid financials and positive free cash flow generation. Corporate governance has improved after the companies reduced the number of listed subsidiaries or classes of shares, minimizing the minority shareholder risk, especially in Brazil."
"Stock picks: We prefer companies with consistent records of good results, solid balance sheets and the ability to pay dividends and buy back shares while being well positioned to grow in broadband (mobile and fixed) or pay TV. We assign Overweight ratings on Telefonica Brasil (NYSE: VIV), America Movil (NYSE: AMX), TIM Participacoes (NYSE: TSU) and NII Holdings (Nasdaq: NIHD). We assign Equal Weight ratings on Megacable and TV Azteca. And we assign Underweight ratings on Televisa and Axtel. Stock picking within this group is important since stock performances have varied significantly in the past decade."
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