UPDATE: Citigroup Reiterates, But Lowers PT on NII Holdings on Multiple Challenges Going Forward
In a report published Monday, Citigroup analyst Lucio Aldworth reiterated a Sell rating on NII Holdings (NASDAQ: NIHD), but lowered the price target from $3.00 to $2.00.
In the report, Citigroup noted, “NII's push-to-talk services face a tough future with falling mobile pricing among its mass-market competitors, a limited handset portfolio, narrower signal coverage and technological disadvantage. With that, the pace of iDen-sub loss has intensified, as has ARPU contraction - US$-revenues shrunk 26% in 3Q13 and is not showing signs of improvement. Meanwhile, mobile-data offerings are still in an early stage, and while 3G should help increase NII's target market, expand ARPUs, and improve margins, there is no evidence thus far that it is helping in any way. By the time 3G has enough scale to support the business, it might already be too late, given the pace of erosion of the iDen business and large 2016 debt amortization.”
NII Holdings closed on Friday at $2.55.
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