Scotia Capital Has Sector Perform On America Movil

Scotia Capital is out with a research report on America Movil AMX and it has a Sector Perform rating and a $31 price target on shares. In a note to clients, Scotia Capital writes, "Since the July 2008 launch of portability in Mexico, America Movil has taken lines away from Telefonica, without exception in 37 months. But portability results for Q2/11 may point to the end of this trend. From an all-time high number of disconnections in January of 2011 (42,546), Telefonica has achieved substantially improve results, disconnecting only 9,623 lines in April, 6,218 in May, and a new record low in June of 2,515 lines. TEF's launch of a new prepaid flat rate in July is likely to accelerate the turnaround, in our view." Shares of AMX closed at $23.99 yesterday.