UPDATE: Morgan Stanley Upgrades America Movil to Equal-Weight on Improved Risk/Reward

Morgan Stanley upgraded America Movil

from Underweight to Equal-weight and lowered the price target from $23.00 to $19.00. Morgan Stanley analyst Michel Morin wrote, "Our previous UW rating reflected our concern that the regulatory and competitive environment would become more challenging. After the recent sell-off, this now appears to be the consensus view. If we assume a Mexican bear case whereby 2015 Mexico EBITDA falls 50% from our previous forecast, we would still see AMX generate EPADR of about $1.45, implying a P/E of 13x. Moreover, near-term results could prove resilient, if AMX cuts customer acquisition and retention costs and/or if they raise prices for their least profitable customers." America Movil closed at $18.47 on Monday.