Telefonica: Deutsche Bank downgrades to 'sell

(CercleFinance.com) - Deutsche Bank announced on Thursday that it had downgraded its recommendation on Telefonica shares from 'hold' to 'sell', with a price target reduced from 4.
3 to 3.2 euros.

In a research note, the analyst expresses concern at the divergence between the evolution of the operator's share price and that of its fundamentals.

After the share's recent outperformance, which it explains by the Spanish government's capital increase, Deutsche Bank says it considers Telefonica to be one of the most expensive stocks in the sector at present.

DB adds that its earnings estimates are below the Group's medium-term targets, believing that the poor rollout of fiber optics in Spain is likely to penalize the Group's performance.

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