Scotia Capital Discusses American Movil

Scotia Capital has a Sector Perform and a $31 price target on shares of America Movil AMX. In a note to clients, Scotia Capital writes, "Yesterday, America Movil made an offer to acquire a 40% stake in Telmex, which would imply full ownership on this name. The price offered (MXN10.50 per L share, or US$17.9 per ADR) implies a generous 11.8x 2011E P/E multiple. TMX's 7.7% surge yesterday already priced in most of the upside and we don't see AMX revising up the offer." Shares of AMX closed at $24.58 yesterday.