TEO Should I Buy
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Telecom Argentina SA (TEO) is not a strong buy at the moment for a beginner investor with a long-term strategy. Despite some positive financial growth trends, the macroeconomic risks in Argentina, lack of clarity on regulatory approvals, and recent analyst downgrades make this stock a hold rather than a buy.
The technical indicators show mixed signals. The MACD is slightly positive and contracting, suggesting weak bullish momentum. RSI is neutral at 49.313, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). Key support and resistance levels are at 10.806 and 12.182, respectively. However, the pre-market price of $11.7 is close to the pivot point of 11.494, indicating limited immediate upside potential.
Revenue increased by 46.48% YoY, and gross margin improved by 39.71% YoY in Q4 2025, indicating operational efficiency.
Scotiabank downgraded the stock to Underperform, citing significant macroeconomic risks in Argentina, including high inflation and lack of dollarization. EPS dropped significantly (-333.33% YoY), and there is no clarity on regulatory approvals for integration with Telefonica Moviles.
In Q4 2025, revenue and net income showed growth (46.48% and 12.37% YoY, respectively), but EPS dropped to -0.07, reflecting profitability challenges. Gross margin increased to 63.89%, showing improved operational efficiency.
Scotiabank downgraded the stock to Underperform with a price target of $8.60, citing macroeconomic risks and regulatory uncertainty. This reflects a bearish sentiment from analysts.
