UPDATE: JP Morgan Downgrades NII Holdings to Underweight on High Valuation, EBITDA Decline

JP Morgan downgraded NII Holdings 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.