Telefonica: Jefferies upgrades to 'buy'
(CercleFinance.com) - Jefferies has upgraded Spanish telecoms giant Telefonica to "buy" from "hold," citing an improving domestic outlook.
"We contest the popular view that MasMovil's challenger threat and FTTH overbuild will consign Telefonica to a future of commoditised retail offers alongside a shrinking wholesale business," Jefferies analysts wrote in a note to clients.
The broker cites, amongst other things, Telefonica's limited exposure to MasMovil target segments, a first-mover advantage in FTTH, and cost control as supporting opportunities.
Jefferies previously upgraded Telefonica to "hold" last February after rating the stock at "underperform" for five years.
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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.
"We contest the popular view that MasMovil's challenger threat and FTTH overbuild will consign Telefonica to a future of commoditised retail offers alongside a shrinking wholesale business," Jefferies analysts wrote in a note to clients.
The broker cites, amongst other things, Telefonica's limited exposure to MasMovil target segments, a first-mover advantage in FTTH, and cost control as supporting opportunities.
Jefferies previously upgraded Telefonica to "hold" last February after rating the stock at "underperform" for five years.
Copyright (c) 2018 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.