Telecom Argentina downgraded to Underperform from Sector Perform at Scotiabank

Scotiabank analyst Andres Coello downgraded Telecom Argentina to Underperform from Sector Perform with a price target of $6.10, up from $5.70. The 45% shared rally since mid-August more likely reflects the macro sentiment, not fundamentals, the analyst tells investors in a research note. The firm says Telecom Argentina’s equity yield at 9.1% is below funding costs at 9.8%.