Telefonica: shares fall after broker downgrade

(CercleFinance.com) - Telefonica shares fall almost 1% to 7.
6 euros on Tuesday after analysts at Berenberg downgraded the stock from "buy" to "hold," saying that debt has become an issue at the Spanish telecom giant.

"With spectrum auctions in Germany, Spain and the UK in the next 18 months, de-gearing is likely to be limited," analysts warn in a research note.

"We would welcome further disposals of non-core assets, but near-term these are likely to be small and piecemeal," they added, cutting their target price from 9.2 euros to 7.9 euros.

Telefonica shares are currently the sharpest faller in Spain's blue-chip index IBEX 35, underperforming the index, which is pretty flat at present.

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