Barclays Maintains an 'Overweight' on TIM Participacoes (TSU); Investor Day: Neutral Impact on the Stock

Barclays maintains an 'Overweight' on TIM Participacoes (NYSE: TSU) price target of $29.00.

Barclays analyst said, "TIM Participações hosted an investor day in Rio de Janeiro on Monday, December 5th. We believe the announcements made there are neutral for the stock. The main highlights are as follows: 1) Capex guidance for the next three years is approximately R$2.9 billion per year,
totalling R$ 8.7 billion between 2012 and 2014. This number is 11.5% higher than our estimate of R$7.8 billion for the same period. Capex-to-revenues is expected to reach 15%-17%, in line with TSU's main competitors, Telefonica Brasil and America Movil-Claro; 2) Fixed broadband: TSU expects to reach 450,000 fixed broadband users by 2014 and one million by 2016 with forecasted revenues of R$950 million/year. The implied ARPU is R$80/month. We think it is early to add these numbers into our estimates. In terms of total fixed line business, we estimate revenues of R$2.6 billion per year in 2016, which includes revenues from Atimus and Intelig."

For an analyst ratings summary and ratings history on TIM Participacoes click here. For more ratings news on TIM Participacoes click here.

Shares of TIM Participacoes closed at $24.87 yesterday.

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