UPDATE: JP Morgan Downgrades NII Holdings to Underweight on High Valuation, EBITDA Decline
JP Morgan downgraded NII Holdings (NASDAQ: NIHD) from Neutral to Underweight.
JP Morgan said, "We are downgrading NIHD to Underweight (from Neutral) following disappointing guidance released by the company for 2013, which implies EBITDA declining 33% y/y, and expensive valuation, with NIHD trading at 8.3x 2013E EV/EBITDA vs. a 4.5x LatAm peer median. NIHD is also highly leveraged (3.5x ND/EBITDA, rising to 6.7x by the end of 2013E) and faces significant operational risks as it ramps up its new 3G network and attempts to regain traction with post-paid users in Brazil."
NII Holdings closed at $5.83 on Tuesday.
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