Shares of America Movil SAB de CV (NYSE:AMX) have been on an uptrend after the company's first-quarter earnings release.
There are signs of improvements in the company's competitive standing in Mexico and Brazil, which collectively represents more than 60% of its consolidated revenue and EBITDA, according to Goldman Sachs.
The America Movil Analyst: Vitor Tomita upgraded the rating for America Movil to Buy, while keeping the price target unchanged at $22.
The America Movil Thesis: An analysis of the company, its competitors and regulators in Mexico, Brazil and Colombia now suggests an inflection point, Tomita said in the upgrade note.
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He added that America Movil's latest capex guidance indicates there is "room for cash generation to improve significantly in 2024 and beyond, following a capex peak in 2023."
"AMX has underperformed the Mexico IPC index significantly since 2023 and is now trading at more-attractive multiples relative to historical levels, combined with a more-favorable balance of positive vs. negative potential catalysts, including improving results and eventual new guidance/announcements by the company," the analyst wrote.
AMX Price Action: Shares of America Movil had risen by 1.94% to $19.20 at the time of publication on Monday.
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