Telecom Argentina downgraded to Underperform from Sector Perform at Scotiabank

Scotiabank downgraded Telecom Argentina to Underperform from Sector Perform with an unchanged price target of $5.70. The recent 40% rally has driven Telecom Argentina’s market cap to a level impossible to sustain by a weak short-term outlook on free cash flow generation, the analyst tells investors in a research note. The firm says an open and more dynamic economy is likely to require technology upgrades that Telecom Argentina “could find hard to afford.”