Barclays on Latin America Telecom & Media: Mexico Wireless: America Movil (AMX) - Good Competitive Position

Barclays on Latin America Telecom & Media: Mexico Wireless

Barclays analyst, Vera Rossi, said, "America Movil (NYSE: AMX) - good competitive position: Based on Cofetel's number portability data, America Movil continued to report net gains, while Iusacell and Telefonica reported net losses. The main surprise has been an acceleration of this trend. We believe number portability data is an important indicator of customers' preferences, despite the fact that it is difficult to predict market share gains/losses just based on number portability data."

"Telefonica (NYSE: TEF) net losses accelerating: The number portability data shows acceleration in net losses in the last two months. In addition, our industry data indicates that Telefonica lost 200 basis points in market share of revenues in the past three quarters."

'What we like: We maintain our Overweight rating on America Movil, as we believe the company has a strong competitive position in Latin America, especially in Mexico. In our view, the main catalyst for the stock price is an improvement in operating performance in the main countries: Mexico and Brazil. We believe the new information and data points in the past two months have been positive for the stock."

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