Analyst Note| Michael Hodel, CFA |
Telefonica Brasil (Vivo) posted modestly disappointing first-quarter results as stiff wireless competition from America Movil’s Claro has pressured Vivo’s premium pricing. Offsetting that pressure, growth in the Brazilian wireless market has accelerated nicely, allowing Vivo to still expand wireless services year over year. The firm’s fixed-line business also delivered strong results as its fiber build-out continues apace. We don’t expect to significantly change our $11 fair value estimate, and we believe the ADRs are attractive.