UPDATE: Morgan Stanley Reiterates Equal-Weight Rating, Raises PT on Telecom Argentina SA as Challenges Remain Despite Growing Optimism

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

, and raised the price target from $17.00 to $18.00. In the report, Morgan Stanley noted, “We modestly raise our projections to reflect better-than-expected 1Q14 results and raise our PT to $18/ADR from $17. Our EW reflects weak fundamentals but also the prospect that Argentine assets may continue to re-rate ahead of a possible normalization of macro policy.” Telecom Argentina SA closed on Tuesday at $19.62.