Scotia Capital Has Sector Underperform on American Movil

Scotia Capital is out with a research report on American Movil (NYSE: AMX) and it has a Sector Underperform rating and a $23 price target on shares.

In a note to clients, Scotia Capital writes, "Although organic growth (fixed and mobile) was slightly lower than in Q3/10, competitive pressures in Brazil, and regulation in Mexico, were the key reasons behind the 261 bp contraction in the consolidated EBITDA margin, driving a weak 1.0% YOY growth in this indicator in local currency terms (even lower than the 1.8% reported in Q2/11)."

Shares of AMX closed at $26.42 on Friday.