UPDATE: Morgan Stanley Reiterates Equal-Weight Rating, Removes PT on TIM Participacoes SA on Mixed 1Q14 Results

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

, but removed the $24.00 price target. In the report, Morgan Stanley noted, “EBITDA of R$1.32bn (+8% y/y) missed our estimate of R$1.35bn by 3% and consensus by 2%. Ex.MTR, EBITDA would have grown 13% y/y to R$1.39bn. Relative to our estimates, the downside came from lower-than-expected revenues (-4% vs. MSe), as total costs and expenses were 5% below MSe. EBITDA margin expanded 200bps to 28.0% and service margins expanded 250bps to 33.2%. Margins were buoyed by the MTR cuts, but the solid result comes despite expanding distribution channels and postpaid mix.” TIM Participacoes SA closed on Thursday at $28.11.