Telefonica: Berenberg cuts target

(CercleFinance.com) - Berenberg has cut its target price for Spain's Telefonica to 9.
2 euros from 11 euros, citing FX grounds.

The German broker - which still has a "buy" rating on the shares - said "FX demons" have come back to haunt the telephone carrier.

"The difference with past cycles is that this management team is considering deleveraging as its top priority, the company has the longest-ever maturity life of debt, a dividend having been rebased 18 months ago and declining capex intensity," it wrote in a report.

Shares of Telefonica are currently up 0.2%.

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