Telefonica: shares fall after Jefferies downgrade

(CercleFinance.com) - Telefonica shares fell almost 3% in afternoon trading on Thursday, after Jefferies downgraded the Spanish telecommunications company from "hold" to "underperform.
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In a note to clients, the US broker said the phone giant is "still in deep water" as it is forced to pivot urgently from "premium" to "value" in its Spanish home market.

"Recession and a six-player market are the driving forces," Jefferies wrote in a note. "Domestic pressure undermines prospects for organic deleverage," it added.

The Madrid-listed stock was down 2.8% following this downgrade.

Note that the share jumped almost 10% yesterday after the company announced that its Telxius unit had signed an agreement with American Tower Corporation for the sale of towers in Europe and LatAm for 7.7 billion euros in cash.

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