Analyst Note| Michael Hodel, CFA |
Mexico was a strong point for America Movil during the third quarter, with fixed-line service revenue returning to growth for the first time since at least 2016 on solid broadband customer growth. Results elsewhere were generally solid as well, though the Brazilian fixed-line business continues to struggle, and Colombian wireless growth has dropped sharply amid competitive entry. We believe Movil is performing well, and we like the moves it has made to exit Panama, where it is subscale, and combine assets with Liberty Global in Chile, creating a converged fixed-line and wireless player. We’re increasing our fair value estimate slightly to $19 from $18 on increased growth expectations in Mexico and several smaller changes to our forecast.