Risk factor
Considerable default risk
Profitability factor
Decent dividends
About
Based in Buenos Aires, Argentina, Telecom Argentina S.A. is a prominent telecommunications conglomerate, established in 1979. Through its subsidiaries, the company delivers a comprehensive portfolio of communication services to its customers. Its mobile division provides voice communication, high-speed mobile internet for content streaming and downloads, alongside various other digital offerings. The company also retails a selection of mobile devices, such as smartphones, MiFi modems, wingles, and smartwatches. For connectivity, Telecom Argentina offers internet products, including virtual private network services and conventional Internet protocol links. Its entertainment segment features programming and other cable television services. Traditional telephony remains a core offering, covering local, domestic, and international long-distance calls, as well as public telephone services. These are complemented by a suite of advanced features like call waiting, forwarding, conference calls, caller identification, voicemail, itemized billing, and maintenance. Furthermore, the company supplies critical infrastructure services, interconnection, datacenter solutions, general internet provisions, value-added services, and international long-distance capabilities. Its specialized data services encompass data transmission, virtual private networks, symmetric internet access, domestic and international signal transport, and videoconferencing. Expanding its offerings, Telecom Argentina operates Personal Pay, a digital wallet service, and provides various management and administration services. The company rebranded from its former name, Cablevisión S.A., to Telecom Argentina S.A. in January 2018.
Company Valuation
Based on key historical and expected multiples, the stock is fairly valued relative to its peers. In particular, the stock is reasonably priced on P/E, of fair value on E
Target Price
The average target price of TEO is 13 and suggests 13% downside potential. Usually, this means a SELL recommendation among investment firms, or a recommendation to decrea