UPDATE: Morgan Stanley Reiterates on America Movil SAB de CV on Doubling Down in Austria

In a report published Thursday, Morgan Stanley analyst Michel Morin reiterated an Equal-Weight rating on

, but removed the $20.00 price target. In the report, Morgan Stanley noted, “Our preliminary estimate is that the increased investment in Telekom Austria would be neutral to AMX EPS excluding any synergies and that leverage will increase from approximately 1.7x to about 2.0x Net Debt-to-EBITDA. This assumes that AMX will subscribe up to 75% of the planned EUR1bn capital increase and that it will succeed in acquiring the entire free float at the offer price of EUR7.15/share. "The announcement is consistent with the information disclosed in numerous press articles in recent days (see ‘América Móvil in government talks over Telekom Austria', Financial Times, February 25, 2014), and as such we expect only a minimal impact on the shares.” America Movil SAB de CV closed on Wednesday at $19.63.