UPDATE: Itau BBA Upgrades America Movil to Market-Perform on Proposed T&B Bill

In a report published by Itau BBA analyst, Gregorio Tomassi upgraded America Movil AMX to Market-Perform with a YE13 $21 price target. Itau BBA reported that, “Our new YE13 target price reflects our view of how AMX's overall performance in Mexico would change should the industry converge rapidly to one in which market share among players is more balanced, competitive conditions are improved for challengers, and AMX loses some of its current pricing power. Our new 5-year scenario (2012-17) for AMX in Mexico assumes that: i) revenues decline 3%-4% annually, plunging by around 8% in 2015 and 2016; and ii) EBITDA margin shrinks to around 32% in 2017 from 45% in 2012, also plunging in 2015 and 2016, by around 380 bps annually. We deem it of little value, and probably distracting, to try at this point to take a more bottom-up route. Similarly, we believe it isn't worth trying to estimate the sum of individual impacts from a combination of probable regulatory actions and eventual moves from other players (too early, considering available information and the initial stage in the process).” Shares of America Movil closed at $19.80 on Thursday.