AMX Stock Forecast & Price Target

America Movil's position as the largest telecom carrier in Latin America is underpinned by significant wireless service revenue growth, particularly in Brazil and Central America, where EBITDA growth accelerated to 13.9% and 13.2% year-over-year, outpacing Mexico's performance. The firm's strategic focus on expanding its fiber-to-the-home (FTTH) offerings has led to increased revenue performance in fixed-line services, with Telmex reporting a notable rise in homes passed to 26 million. Additionally, Argentina's economic revival has positively impacted EBITDA growth, contributing to a favorable overall outlook for America Movil's financial performance and operational efficacy across the region.

America Movil's wireless service revenues in Mexico grew at a mere 3.8% in Q3/24, falling short of the prevailing inflation rate of 4.6% year-over-year, indicating weak performance amidst a challenging competitive landscape. The company's position is further compromised by anticipated declines in service revenues due to upcoming constitutional reforms aimed at transforming the telecom sector into a state-controlled entity, which is likely to exacerbate competition and pressure on profitability. Additionally, concerning trends in VTR, with a 5.0% year-over-year sales decline and a low EBITDAaL margin of 10.1%, suggest that the broader market dynamics may hinder growth prospects, particularly as broadband cannot sufficiently compensate for declining video revenues.