JPMorgan upgrades America Movil stock rating on Mexico strength

JPMorgan has upgraded America Movil's stock rating to Overweight from Neutral, increasing its price target to $32.00 from $30.00. The firm highlights the company's strong performance in Mexico, accounting for roughly 55% of its expected earnings for 2025. Prepaid mobile service has shown consistent growth over five quarters, indicating a more robust competitive landscape than broader consumer trends might suggest.

Fixed-line services have experienced steady 4% growth, outpacing previous second-quarter comparisons. Broadband revenue has also surged at a rate of 6.3% for three consecutive quarters, marking the highest growth since early 2025, despite Telmex not raising its entry-level prices. JPMorgan has revised its 2026 and 2027 service revenue forecasts by 2.0% and 2.4% respectively, along with an increase in EBITDA estimates by 2.0% for 2026 and 2.5% for 2027.

The bank anticipates most free cash flow will be allocated towards reducing debt and returning value to shareholders, although the potential for mergers and acquisitions remains uncertain. JPMorgan's free cash flow yield of 14% supports this deleveraging strategy, and the company has raised its dividend for the tenth consecutive year.

América Móvil's second-quarter 2026 financial results showed a revenue of $241.07 billion, surpassing analyst estimates by a small margin, despite a significant drop in earnings per share to $0.02 from the expected $0.4264. While revenue growth outpaced expectations, the substantial decline in EPS highlights a mixed financial picture for the quarter.