Telefonica: Deutsche Bank downgrades to 'sell'

(CercleFinance.com) - On Thursday Deutsche Bank downgraded Telefonica shares from 'hold' to 'sell', with a target price reduced from E4.
3 to E3.2 (cp: E4.15, -2%).

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 increasing its stake, Deutsche Bank says that 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 penalise the group's performance.


Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.