Analyst Note| Michael Hodel, CFA |
TIM again gradually lost wireless market share in exchange for higher pricing during the second quarter. Revenue growth continues to accelerate modestly, even adjusted for the easy comparison versus the worst of the pandemic a year ago, and margins continue to drift higher. Management remains confident that the Oi transaction will close by the end of the year, viewing regulators’ recent request for additional information as routine. We aren’t changing our $15 per ADR fair value estimate. While TIM trades at a discount to our valuation, we prefer Telefonica Brasil for exposure to Brazil.