NII Holdings announces Brazilian iPhone deal, shares soar

|About: NII Holdings, Inc. (NIHD)|By:, SA News Editor

NII Holdings (NIHD +14.6%) says its Brazilian unit will begin offering the iPhone 5S and 5C on Jan. 31. Shares of the struggling Latin American carrier have flown higher in response.

Stifel, which maintains a whopping $12 PT on NII (more than 300% above current levels), thinks iPhone sales will lead to stronger 2014 Brazilian subscriber growth.

It's worth noting rival Brazilian carriers already offer the iPhone. In addition, Brazilian iPhone sales have been crippled by steep tariffs and taxes. Whereas the 16GB iPhone 5S goes for $649 unsubsidized in the U.S. (~$700 after sales tax in many states), it goes for ~$1,200 in Brazil.

NII shares jumped on Monday in response to a Brazilian/Mexican wholesale deal with Telefonica, but quickly gave back most of their gains.