TalkTalk: shares fall after broker downgrade.

(CercleFinance.com) - TalkTalk shares are down almost 6% on Friday after Barclays Capital downgraded the British broadband operator, citing valuation concerns.


BarCap analysts, who cut their recommendation on the shares from "overweight" to "equal weight," said in a report issued this morning that even after increasing its target price from 185 pence to 215 pence, they do not see upside in current forecasts.

"We also do not expect the upcoming first-half results to indicate any significant change in earnings trajectory, with the company focused firmly on growing the customer base and repositioning its mobile strategy", the brokerage firm adds.

BarCap believes upside potential could come from fibre co-investment or fixed-mobile M&A optionality, which it does not see as likely to happen in the foreseeable future.

TalkTalk shares are currently down almost 6% at 205 pence.

Copyright (c) 2017 CercleFinance.com. All rights reserved.