Scotiabank downgraded Liberty Latin America, says switch into Millicom

Scotiabank yesterday afternoon downgraded Liberty Latin America (LILAK) to Sector Perform from Outperform with an unchanged price target of $10.20. The firm sees the stock’s valuation as fair following the 21% rally since early May. Scotiabank advises investors to re-visit the story at least until after the peak of the hurricane season in mid-October. A major weather event in a key market such as Puerto Rico, Jamaica, Bahamas or Barbados, could significantly impact the the company’s free cash flow outlook, the analyst tells investors in a research note. The ifrm recommends investor switch into shares of Millicom (TIGO).