Investing.com - Morgan Stanley upgraded Telecom Argentina shares to Overweight from Equalweight and raised its price target to $17.00 from $13.00, according to a report released Tuesday.
Analyst Cesar Medina said announced remedies contributed to an 11% sell-off on lower than expected M&A benefits that the stock had not priced in. Telecom Argentina (NYSE:TEO) acquired TMA in February 2025.
Morgan Stanley said that since the acquisition, TEO has moved mostly in-line with MSCI Argentina, suggesting the market was cautious in pricing meaningful M&A benefits. By complying with regulator remedies, TEO can unlock M&A synergies and move TMA EBITDA margin from 29% in the first quarter closer to organic margins of 37%.
The firm raised its target to account for lower country risk and moved M&A benefits from its Bull case to its Base case.
Telecom Argentina operates as a telecommunications company providing mobile, fixed-line, and internet services in Argentina.
In other recent news, Telecom Argentina has received an upgrade from JPMorgan, moving its stock rating from Neutral to Overweight. This change comes as the company progresses in its acquisition of Telefonica Argentina. The antitrust review of this deal, which was initially announced in February 2025, seems to be nearing completion. Recent reports in La Nacion indicate that a final report on the acquisition is expected in May 2026. Alongside the upgrade, JPMorgan has also raised its price target for Telecom Argentina from $12.00 to $16.00. These developments mark significant steps forward for Telecom Argentina in its strategic expansion efforts. Investors will likely be watching closely as the acquisition moves toward finalization.
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