Tim SA downgraded to Sector Perform from Outperform at Scotiabank

Scotiabank downgraded Tim SA to Sector Perform from Outperform with an unchanged price target of $18, citing valuation after a 32% rally since mid-May, including cash distributions to shareholders. The firm has raised TIM’s price target twice this year and doesn’t have “reasons to lift our estimates further, especially in light of potential tax reform,” the analyst added. The firm advises investors in the LatAm Telecom space to switch long positions to Outperform-rated Millicom (TIGO), which is committed to delivering strong EFCF in 2024 on top of M&A optionality.