March 26 (Bloomberg) -- Tim Participacoes SA, Brazil’s second-biggest mobile operator by market share, rose the most in seven months after Barclays Plc raised the stock to the equivalent of buy from hold on the prospect of higher revenue.
The Brazilian unit of Telecom Italia SpA rallied 4.3 percent to 8.83 reais at the close of trading in Sao Paulo, the most since August 31. The benchmark Bovespa index rose 1.5 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 company said on Feb. 7 that its board appointed Rodrigo Modesto de Abreu as new CEO, replacing Andrea Mangoni, who had announced resignation two days before as profit trailed estimates on five of the latest six quarters.
The company’s shares gained 7.7 percent this year, while the Bovespa dropped 8.7 percent during the same period.
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