Scotia Capital Has Sector Perform On America Movil
Scotia Capital is out with a research report on America Movil (NYSE: AMX) and it has a Sector Perform rating and a one-year price target of $31.
In a note to clients, Scotia Capital writes, "America Movil reported Q2/11 results that reflected only partially the negative effects of regulatory developments and tougher competition in Mexico. Wireless ARPU in this country was off 7.3% year-over-year, EBITDA contracted 4.4% and margins were off by 330 bp. Brazil wasn't much better, with wireless ARPU falling 11.7% and EBITDA margins contracting 130 bp. Despite positive currency effects, consolidated EBTIDA came in 2.7% below our estimates. AMX, once a double-digit growth story, grew consolidated EBITDA by only 1.8% year-over-year. EPS at P$0.3 was right in line with our estimates. "
Shares of AMX closed at $25.43 yesterday.
