Telecom 2Q25: Neutral Amid Uncertainties While Upside Remains Limited

Below expectations margins and weak liquidity offset deleveraging gains, while integration risks and above-par pricing limit near term upside

Key Insights and Recommendations

We maintain our Neutral recommendation on Telecom Argentina (B2/B-/B). The notes offer attractive yields, and we think Telecom’s strategy is well positioned to leverage its strong market presence, with leverage metrics appearing solid and expected to improve further as the Telefónica integration progresses. However, we think a better entry point may emerge once there is greater clarity on regulatory, acquisition, and political fronts, while the 2031 and 2033 notes trade above par at $105.9 and $104.6, respectively, limiting near-term upside.