Telecom Argentina (TEO) Sees Mixed Signals Amid Analyst Reassessment and Shifting Institutional Positions

Analyst Rating Shift Brings Mixed Market Outlook

In late February 2025, JP Morgan adjusted its investment stance on Telecom Argentina S.A. - Depositary Receipt (NYSE:TEO), transitioning the coverage from a bearish “Underweight” classification to a more neutral position. Despite this technical upgrade, the research team’s valuation analysis presents a cautionary perspective, with consensus forecasts indicating approximately 4.84% downward pressure on share value relative to current market levels.

As of the latest analyst consensus compiled in mid-2024, the collective price target stands at $11.51 per share, reflecting a range between $11.40 and $11.85. Given TEO’s most recent closing price of $12.10, the implication suggests a potential contraction in near-term valuations. The forward-looking earnings projection paints a more challenging picture, with non-GAAP EPS estimates tracking at -70.91, underscoring operational headwinds within the company’s financial trajectory.

Institutional Positioning Reveals Complex Market Dynamics

The institutional investor landscape around Telecom Argentina demonstrates nuanced positioning patterns. Approximately 50 institutional funds maintain active positions in TEO, with cumulative portfolio allocations remaining stable quarter-over-quarter. However, aggregate fund weightings dedicated to the security have expanded meaningfully—rising 123.31% to reach an average 0.21% of portfolio values. Notably, total institutional share ownership increased 15.80% during the trailing three-month period, now encompassing 10,137K shares across major holders.

Sentiment metrics suggest caution, with the put/call ratio registering at 1.79—a level typically associated with bearish market positioning.

Major Shareholders Rebalancing Portfolios

Oaktree Capital Management currently holds 2,799K shares, down from its prior 3,079K position—representing a 10.00% reduction. Paradoxically, the firm elevated its portfolio concentration in TEO by 68.06% in relative terms, signaling continued conviction despite absolute share trimming.

MIRAE ASSET GLOBAL ETFS HOLDINGS substantially increased its stake to 2,327K shares from 1,103K shares previously, marking a 52.61% expansion. The entity simultaneously boosted its portfolio allocation intensity by 97.61%, indicating growing interest in the Argentine telecom sector.

ARGT - Global X MSCI Argentina ETF moved modestly higher to 1,173K shares from 1,063K, a 9.41% increase that kept portfolio weighting relatively stable with just 4.24% allocation growth.

RWC Asset Management LLP reversed direction with a 28.92% position cut, falling to 932K shares from 1,201K, and correspondingly reduced its portfolio focus by 0.62%.

RWC Asset Advisors similarly contracted holdings to 835K shares from 1,094K shares—a 31.05% decline—yet interestingly elevated its relative portfolio commitment by 112.73%.

About Telecom Argentina

Telecom Argentina S.A. operates as the dominant telecommunications provider throughout northern Argentina, with dominant market presence across Buenos Aires and surrounding regions. The company represents a key infrastructure asset within the region’s communications ecosystem.