[CSFB raises recommendation on CEL to "Buy".]
Wednesday August 30, 12:29 pm Eastern Time
RESEARCH ALERT-CSFB ups Mexico's Iusacell to buy
MEXICO CITY, Aug 30 (Reuters) - Credit Suisse First Boston
said Wednesday it raised its investment recommendation on
Nuevo Grupo Iusacell, Mexico's second biggest cellular
service provider, to buy from hold.
-- In a report, CSFB said Iusacell's stock had fallen 54
percent in the last six months from its $24.75 peak on Feb.
14. The company's lower-than-expected second quarter results
contributed to the decline, but CSFB believed the market had
overreacted.
-- ``There are no additional cellular or PCS licenses to be
auctioned in Mexico in the medium term,'' the report said.
``This factor, coupled with a possible change in the 49
percent limit of foreign ownership after (Vicente) Fox takes
office might position Iusacell as an important consolidation
play (in the sector).''
-- President-elect Fox, from the opposition PAN party, will
take office on Dec. 1.
-- Iusacell, 37 percent owned by U.S. Verizon Communications
(NYSE:VZ - news), rose 8/16 to 11-15/16 per ADR (NYSE:CEL -
news), or American Depositary Receipt, Wednesday mid-morning.
Its shares in the local stock market had not traded yet, but
closed at 10.72 pesos last Thursday. |
