BY JOACHIM BAMRUD
U.S.-based NII Holdings (NIHD), which owns wireless operators in five Latin American countries, is expected to post a solid second half, company officials and analysts say. "We expect continued growth for the company not only in the second half of 2008, but into 2009 and 2010 and beyond, as well," says Christopher King, a Principal at Stifel Nicolaus. “NIHD is (and has been) our top stock pick in our coverage universe.” Stifel Nicolaus, which has provided advisory services to NII, has a Buy rating on the shares and an $81 price target.
That optimism is partly based on NII Holding's strong performance in the first half of the year. Operating revenues grew by 39.6 percent to $2.1 billion. Operating income increased by 40.9 percent to $391.5 million, while net income grew by 59.7 percent to $268.8 million. Meanwhile, the number of subscribers jumped 34.1 percent to 5.4 million.
“We are excited about our strong start for the first half of 2008,” says Steve Dussek, who became CEO of NII Holdings in February. “The actions that we took to improve our competitive position led to our success in 2007, and the positive impact has carried over into the first half of 2008 as evidenced by our...
Keywords: Argentina, Brazil, Mexico, Peru, Zacks Investment Research