Telefonica: analyst downgrade weighs on share
(CercleFinance.com) - The Telefonica share is down on Friday morning after negative comments by UBS, which has downgraded its rating on the share.
Deploring weak results, as well as a deleveraging process that is deemed too slow, the broker has decided to downgrade its rating on the share of the Spanish telecom operator from "buy" to "neutral".
At the same time, UBS has cut its target price from 9.1 euros to 6.4 euros.
In its note, the broker also says that it is concerned about a risk of deterioration in business trends in Spain.
The Telefonica share is currently down almost 2% in Madrid, underperforming the IBEX 35 index, which is down just under 1%.
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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.
Deploring weak results, as well as a deleveraging process that is deemed too slow, the broker has decided to downgrade its rating on the share of the Spanish telecom operator from "buy" to "neutral".
At the same time, UBS has cut its target price from 9.1 euros to 6.4 euros.
In its note, the broker also says that it is concerned about a risk of deterioration in business trends in Spain.
The Telefonica share is currently down almost 2% in Madrid, underperforming the IBEX 35 index, which is down just under 1%.
Copyright (c) 2019 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.