TIM S.A. (TIMB) PT Lowered to $27 at Scotiabank

Scotiabank analyst Andres Coello lowered the price target on TIM S.A. (NYSE: TIMB) to $27.00 (from $29.50) while maintaining a Sector Perform rating.

The analyst commented: "TIMS3 stock has done little over the last six months (+6.1%) and has lagged the Bovespa (21.8%). There is hardly anything wrong with Q1 numbers, but as with the rest of the LatAm telecom sector, it’s clear that highly penetrated services leave little room for growth. With the wireless base flat versus the prior year (-0.1% y/y), TIMS3’s mobile service revenues (+5.6% y/y) expanded slightly above the last inflation print (4.1%). The fixed-line growth of 22.9% y/y seems attractive, but it was largely the result of the recent BRL 950M I-Systems acquisition. The TIMS3 EBITDA margin at 48.3% y/y is by any measure an excellent margin; however, it barely moved versus Q1/25 (48.2%), which suggests that consolidation tailwinds are fading away. The company’s guided cash remuneration to shareholders at BRL 5.3B to BRL 5.5B imply a yield of 8.3% to 8.6%, compared to a SELIC rate at 14.5% in BRL"

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