Why Did America Movil SAB de CV (AMX.US) Soar 14%?

On April 29, 2025, America Mobile's stock price dropped by 5.65% in pre-market trading.

This week, America Movil SAB de CV (AMX.US) experienced a significant surge of nearly 14%, driven by a positive shift in valuation in the Mexican market. HSBC Analyst Madhvendra Singh upgraded the rating of America Movil from "Hold" to "Buy," increasing the target price from $15.50 to $17.50. This upgrade was based on the expectation that the Mexican market would see a positive valuation shift, which would benefit America Movil. In 2024, the Mexican region is expected to account for 38% of America Movil's total revenue. However, analysts predict that due to the soft macroeconomic environment, America Movil's growth in Mexico may face challenges in 2025, but a recovery is expected by the end of the year.

Despite potential short-term pressures, the company's growth trajectory is anticipated to improve by the end of 2025. HSBC has raised the target price-to-earnings (PE) ratio for its Mexico business from 6.5 times to 7 times, further supporting this positive outlook. This indicates that America Movil's valuation of its business in Mexico has increased, reflecting a more optimistic view of the company's future prospects.