Tim Jumps as Barclays Recommends Buying Stock on Revenue Outlook
Tim Participacoes SA (TIMP3), Brazil’s second-biggest mobile operator by market share, rose the most in a month after Barclays Plc (BARC) raised the stock to the equivalent of buy from hold on the prospect of higher revenue.
The Brazilian unit of Telecom Italia SpA (TIT) rallied 3.7 percent to 8.78 reais at 2:24 p.m. in Sao Paulo, the most on a closing basis since Feb. 22. The benchmark Bovespa index rose 1.1 percent.
“Tim will deliver a broadly positive real growth profile,” Barclays analysts including San Dhillon wrote in a research note today. “We believe there is scope for positive share price performance.”
Tim’s earnings excluding interest, taxes, depreciation and amortization will rise almost 8 percent to 5.4 billion reais ($2.7 billion) this year from 2012, according to the average estimate of 17 analysts surveyed by Bloomberg.
The mobile company’s shares gained 3.3 percent this year through yesterday while the Bovespa dropped 10 percent during the same period.
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