Millicom downgraded to Underperform at Scotiabank on ‘sub-optimal’ leverage

As previously reported, Scotiabank downgraded Millicom (TIGO) to Underperform from Sector Perform with a price target of $43, down from $46.80. A string of acquisitions have “once again pushed leverage to sub-optimal levels” and while the acquisition of Telefonica Chile was crafted to limit the short-term impact on Millicom, the fact that the new JV will most likely operate under the Tigo brand points to imminent long-term consolidation, the analyst tells investors.