2024-05-14 15:03:19 ET
Summary
- Investors who focus on dividends normally look for sectors such as telecom, due to their predictability, but this does not happen in Brazil.
- TIM S.A. trades at a P/B of 1.5x, which is not considered cheap compared to its Telefônica Brasil peer.
- Recent climate events in the state of Rio Grande do Sul may negatively impact TIM S.A.'s revenue in the short term.
Investment Thesis
I recommend selling TIM S.A. ( TIMB ) shares. TIM is considered a defensive company, however, I do not believe that the characteristics of the sector and the Brazilian competitive environment can provide this....
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TIM S.A.: Sector Challenges And Unattractive Valuation