UPDATE: Morgan Stanley Reiterates On TIM Participacoes SA On Balanced Risk/Reward

In a report published Monday, Morgan Stanley analyst Michel Morin reiterated an Equal-Weight rating on TIM Participacoes SA TSU, but removed the $24.00 price target. In the report, Morgan Stanley noted, “As the only mobile pure play among Brazil's Big 4, TIM is best positioned to benefit from fixed-to-mobile traffic substitution, in our view. Healthy balance sheet, FCF generation and recently-expanded credit lines provide scope for a step-up in growth capex and/or dividend increases. Shares have re-rated in recent months, and valuation multiples are above the global EM peer group. We see a more balanced risk-reward, despite upside potential related to the company's strategic value in a market consolidation scenario.” TIM Participacoes SA closed on Friday at $27.64.