America Movil Analyst Turns Bullish On Signs Of Improvement: 'There's Room For Cash Generation'
Portfolio Pulse from Priya Nigam
America Movil SAB de CV (NYSE:AMX) shares have been trending upwards following positive first-quarter earnings. Goldman Sachs analyst Vitor Tomita upgraded AMX to Buy, maintaining a $22 price target, citing improvements in Mexico and Brazil, which are key markets for the company. Tomita highlighted an inflection point in competitive standing and regulatory environment, along with a capex peak in 2023 that suggests significant cash generation potential in 2024 and beyond. Despite underperforming the Mexico IPC index since 2023, AMX now presents attractive multiples and a favorable balance of potential catalysts.
April 29, 2024 | 3:25 pm
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America Movil's stock has been upgraded to Buy by Goldman Sachs, with a maintained price target of $22, following positive developments in key markets and an anticipated improvement in cash generation.
The upgrade by Goldman Sachs, based on improvements in competitive standing and regulatory environments in Mexico and Brazil, along with a favorable cash generation outlook, is likely to positively influence investor sentiment and stock price in the short term. The analyst's positive outlook, despite recent underperformance compared to the Mexico IPC index, suggests a strong belief in the company's potential for recovery and growth.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100