Millicom Initiated At Buy

Deutsche Bank has published a research report on Millicom International MICC and is initiating coverage on the company with a Buy rating. In the report, Deutsche Bank writes "Our analysis shows that Millicom can increase its top line and EBITDA by a CAGR of 9% in the next three years ('11-'13), while its free cash flow can increase at a CAGR of 25% in the same period. This is largely because after increasing next year, capex should flatten out in the medium term as 3G upgrades slow down. This should allow the company to continue increasing dividends and share buyback program, which started early this year." Deutsche Bank also is initiating with a $112 price target. Millicom closed yesterday at $90.77.