Investing.com - Goldman Sachs resumed coverage on TIM S.A. (NYSE:TIMB) with a Neutral rating and set a price target of $23.40. The stock currently trades at $21.92, down 6% over the past week.
The firm highlighted the company’s shareholder remuneration as the most attractive element of its investment thesis. Total shareholder return grew from BRL 1 billion in 2021 to BRL 4.7 billion in 2025.
Goldman Sachs expects distributions to reach BRL 6.6 billion by 2028, representing a 12% yield at current prices, driven by robust cash-flow generation trends.
The firm noted TIM S.A. trades at a lower valuation than competitor Vivo, with a price-to-earnings ratio of 12.0x for 2026 versus Vivo’s 14.7x, and an internal rate of return of 11.4% compared to Vivo’s 9.1%. The company’s current P/E ratio stands at 12.36.
Goldman Sachs cited concerns about structural challenges from Brazil’s convergence trend. With less than 2% of Brazil’s fixed broadband subscribers, TIM can offer its Fiber+Postpaid product in fewer locations than Vivo and Claro, which the firm said could explain the company’s recent struggles in mobile net additions.
In other recent news, TIM Brasil reported mixed financial results for the first quarter of 2026. The company experienced a revenue increase, reaching $1.38 billion, which exceeded analyst expectations of $1.30 billion by 6.15%. However, earnings per share (EPS) fell short of projections, coming in at $0.3453 compared to the forecasted $0.3583, marking a 3.63% miss. These financial developments have drawn attention from investors, as revenue growth was notable despite the EPS shortfall. The earnings report highlights the importance of closely monitoring both revenue and EPS figures, which can have varying impacts on investor sentiment. While the revenue beat is a positive sign, the EPS miss suggests areas for potential improvement. These results are part of the ongoing developments surrounding TIM Brasil’s financial performance.
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