Bloomberg News

Brazil’s Tim Gains as Barclays Gives ‘Overweight’ Rating

October 13, 2011

Tim Participacoes SA (TIMP3), the Brazilian unit of Italy’s largest phone company, snapped a six-day losing streak after Barclays Capital initiated coverage with an “overweight” recommendation.

Shares rose 4.6 percent to 8.58 reais at the close of Sao Paulo trading, bringing the gain this year to 26 percent. The benchmark Bovespa index advanced 1.4 percent today.

Tim is a “good alternative to Telefonica Brasil (VIVT4) for exposure to the Brazilian telecom industry,” Barclays analysts including Felipe Pereira wrote in a report dated yesterday. “The company’s performance has changed significantly in the last two years, with it resuming revenue and subscriber growth and increasing earnings growth.”

The company, Brazil’s second-largest wireless carrier by market share, posted a 27 percent jump in mobile-phone subscribers in August from a year earlier, according to Brasilia-based telecommunications agency Anatel. Tim’s market share rose to 26 percent from 24 percent during the same period, the agency said.

Telecom Italia SpA Chairman Franco Bernabe said on Aug. 5 that Brazil is the company’s “engine of growth” because its revenue in Latin America’s biggest economy advanced 19 percent to 1.85 billion euros ($2.55 billion) in the second quarter. Tim in July agreed to buy AES Atimus Group to add network capacity in Sao Paulo and Rio de Janeiro.

To contact the reporter on this story: Katerina Petroff in Sao Paulo

To contact the editor responsible for this story: David Papadopoulos at

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