HSBC has adjusted its recommendation for Tim SA (TIMB, Financial), changing it from Buy to Hold. The financial institution has also set a new price target for the stock at $19.50. This shift in rating reflects HSBC's updated analysis of TIMB's performance and market conditions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for TIM SA (TIMB, Financial) is $18.67 with a high estimate of $20.00 and a low estimate of $17.50. The average target implies an downside of 1.29% from the current price of $18.91. More detailed estimate data can be found on the TIM SA (TIMB) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, TIM SA's (TIMB, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for TIM SA (TIMB, Financial) in one year is $15.71, suggesting a downside of 16.92% from the current price of $18.91. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the TIM SA (TIMB) Summary page.
TIMB Key Business Developments
Release Date: May 06, 2025
- Mobile Revenue Growth: Increased by 6.2% year-over-year, driven by strong post-pay growth.
- EBITDA Growth: Grew by 6.7% year-over-year, with margin expansion adding 80 basis points, surpassing 48%.
- Operational Cash Flow: Double-digit increase of almost 20%, with cash flow margin reaching almost 16%.
- Net Income Growth: Grew more than 50% year-over-year, marking the highest net income level for the first quarter in TIM's history.
- Service Revenue Growth: Grew 5.6% year-over-year, with the postpaid segment showing close to 14% yearly growth.
- Interest on Capital: Announced BRL690 million as interest on capital.
- Network Modernization: Modernizing over 3,000 sites, resulting in a 40% increase in coverage and capacity, with a 15% reduction in energy consumption.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Mobile revenues increased by 6.2% year-over-year, driven by strong postpaid growth.
- EBITDA grew by 6.7% yearly, with margin expansion reflecting efficient operational execution.
- Significant growth in users following the launch of an updated version of the Meu TIM app.
- Successful expansion in Sao Paolo with a 360-degree approach to customer experience and network modernization.
- Strong performance in B2B IoT strategy, particularly in agribusiness, logistics, and utilities.
Negative Points
- Prepaid segment continues to perform below expectations, with a negative growth outlook.
- Inflationary pressures impacting lease payments, requiring renegotiations and cost control measures.
- Highly competitive broadband market affecting TIM Live's revenue growth.
- Seasonal effects and market constraints impacting prepaid revenue dynamics.
- Operational challenges in maintaining ARPU growth amidst market pressures and customer migration.
