We downgrade our recommendation on
NII Holdings, Inc.
) to Underperform backed by our assessment that the company s
nightmare will continue in the near future. NII Holdings reported
dismal financial results for the third quarter of 2011. Both the
top line and bottom line were well below the Zacks Consensus
Management has slashed its fiscal 2011 financial outlook, mainly
driven by the volatile macro-economic condition coupled with
significant depreciation of several Latin American currencies in
comparison with U.S. dollars. Moreover, stiff competitive scenarios
in Latin American markets are other impediments for such a reduced
We believe intensifying competition and increased promotional
expenses may reduce the company's near-term growth opportunities.
We do not find any immediate catalysts and expect NII Holdings to
report weak financial results for the company's 4th quarter.
NII HLDGS-CL B (
): Free Stock Analysis Report
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