UPDATE: Morgan Stanley Reiterates Equal-Weight Rating, Removes PT on TIM Participacoes Following Strong EBITDA, Weak Revenue

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

, but removed the $26.00 price target. In the report, Morgan Stanley noted, “EBITDA of R$1.50bn (+5% y/y) beat our estimate of R$1.36bn by 11% and consensus by 7%. Relative to our estimates, the upside came from lower costs, as revenues missed MSe and consensus by 3%. EPADR of US$0.45 easily beat our US$0.33 estimate. Consensus was US$0.40. Pre-tax income was 22% better than expected, but lower-than-expected taxes also contributed to the strong bottom line.” TIM Participacoes closed on Friday at $26.50.