UPDATE: J.P. Morgan Downgrades Grupo Televisa SAB to Neutral, Lowers PT on Less Upside Potential

In a report published Monday, J.P. Morgan analyst Andre Baggio downgraded the rating on Grupo Televisa SAB TV from Overweight to Neutral, and lowered the price target from $31.00 to $29.00. In the report, Baggio noted, “We downgrade TV to Neutral, as we see less upside potential on the back of (1) the strong rally in the shares (TV +34% in the last 12 months), outperforming the Mexbol by 14%; and (2) risks related to telco & broadcasting reforms, which should result in lower content revenues as well as higher competition in Pay-TV and potentially broadcasting. We cut our EBITDA'13E/14E by 3%/9%, and reduce our PT to $29, from $31 previously. We continue to prefer TV over AMX, but we favor Brazilian names VIVT4 (OW) and TIMP4 (OW) in LatAm TMT.” Grupo Televisa SAB closed on Friday at $27.45.