“We believe that this is positive news for Alfa, although widely expected. The separation of Axtel brings the company closer to its objective of releasing value, although the spin-off of Alpek is still pending, for which there is no established calendar”, said Gerardo Cevallos, a financial analyst at Vector.
On the other hand, Punto Casa de Bolsa analysts pointed out that there are finally signs that Axtel is reversing the deterioration in its income and profitability, for which reason they endorse a target price towards the end of the year of 1.60 pesos per CPO, which would imply a target price of 0.51 pesos per CTAXTEL share.
“Given a future scenario of probable sale or spin-off of its passive telecommunications infrastructure (towers), a segment that trades at a higher multiple than telecommunications services (due to the predictability of future flows in the long term) and even higher than the multiple current position of Axtel, is another argument that strengthens our investment thesis,” analysts from Punto Casa de Bolsa added in a report.