Zacks Investment Research downgraded shares of NII Holdings Inc. (NIHD) from NEUTRAL to UNDERPERFORM on March 12, 2013, with a target price of $4.25.
We downgrade our recommendation on NII Holdings to Underperform backed by our assessment that the company's slide will continue in the near future. NII Holdings reported dismal financial results for the fourth quarter of 2012. Both the top line and bottom line were well below the Zacks Consensus Estimates. In synergy with the somber results, management slashed its 2013 financial outlook. This was primarily driven by the volatile macro economic condition coupled with depreciation of several Latin American currencies with respect to the U.S. dollar. Furthermore, stiff competitive scenarios in Latin American markets are other impediments for such a reduced outlook. We believe intensifying competition and increased promotional expenses may reduce the company's near-term growth opportunity. We do not find any immediate growth catalysts and expect NII Holdings to report weak financial results.
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