Bank of America Securities analyst Lucca Brendim reiterated a Buy rating on TIM (TIMB – Research Report) on February 11 and set a price target of $20.00.
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Lucca Brendim has given his Buy rating due to a combination of factors including a recent agreement between TIM and C6 Bank that resolves all disputes related to their partnership. This agreement involves TIM returning its minority stake in C6 Bank for R$520 million, a transaction that is pending regulatory approval. The sale value of this stake represents about 1.4% of TIM’s current market capitalization, which was not previously included in TIM’s financial estimates, presenting a potential upside.
Additionally, Brendim maintains a positive outlook on TIM with a price objective of R$22, supported by the consensus earnings per share estimates provided by Bloomberg. The current market conditions, coupled with the resolution of the C6 Bank partnership, contribute to the reaffirmation of the Buy rating, suggesting that TIM’s stock is undervalued at its current trading price of R$15.83, and offers potential for appreciation.
In another report released on February 12, Scotiabank also maintained a Buy rating on the stock with a $17.60 price target.