This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Top Morningstar M&A Stock Picks for 2012

NII Holdings

Latin American carrier NII Holdings (NIHD) is a prime target for consolidation by a bigger telecommunications player because of its strong wireless spectrum assets, a 10 million-plus wireless subscriber base and the strongest average revenue per user in the region, according to Morningstar.

"Now armed with spectrum, and more than 10 million subscribers, the firm should start to garner plenty of takeout attention," writes Morningstar. The company currently has wireless operations in Mexico, Brazil, Argentina, Peru and Chile, over 800 megahertz of spectrum and a walkie-talkie partnership with Sprint (S) to go with its subscribers.

The region's leading carrier and the fourth largest wireless provider in the world America Movil (AMX) is a strong candidate to take out NII Holdings as it continues its buying spree.

"Internationally, America Movil continues to buy-up everything in sight. After engulfing nearly all of cable-giant Net Servicos in Brazil, the firm recently swallowed up the remaining 40% of fixed-line brethren Telmex that it didn't already own. Given its seemingly insatiable hunger for expansion, scale, and synergies, we wouldn't be at all surprised to see it make a similar play for NII Holdings at some point," writes Morningstar. That's especially true after a 2010 merger between NII Holdings and Televisa was put on ice in Aug. 2011.

Morningstar gives NII Holdings a five star rating and a fair value of $42 a share, more than double its current share price of $20.46. The company is expected to earn $25 cents a share in its first quarter 2012 results due on Feb. 23, according to Zacks consensus estimates. Analysts give the company an estimated price target of $36.04 a share on 2012 revenue of $7.4 billion and profit of $279 million, according to data compiled by Bloomberg. For more on NII Holdings shares, see 5 telecom picks for 2012.
7 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ABMD $97.14 0.00%
CHS $12.61 0.00%
CRL $79.27 0.00%
DHX $7.11 0.00%
ICLR $67.58 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs