JPMorgan upgrades Millicom on resumption of free cash flow

JPMorgan analyst Marcelo Santos upgraded Millicom to Overweight from Neutral with a price target of SEK 260, up from SEK 190. The company should resume free cash flow generation as a result of improvements in EBITDA, reduction in spending levels, and lower spectrum-related outflow, the analyst tells investors in a research note. The firm says Millicom trades at the lowest multiple among Latin American telecoms. JPMorgan sees a deleveraging story in the coming years for Millicom, believing the company’s cash flow level is sustainable in the coming years as EBITDA should continue to expand.