Telefonica: Berenberg cuts target price

(CercleFinance.com) - Berenberg has cut its target price for the Telefonica share from 7.
80 euros to 7.40 euros, while maintaining a "hold" rating.

In a note to clients, the German broker said deleveraging and Spain are two key matters at the moment.

With excessive debt, sentiment towards Spanish telecoms likely to remain poor, Berenberg wrote in the report.

Furthermore, with spectrum auctions due in Spain and the UK this year, Telefonica's share price looks unlikely to outperform, despite its valuation appeal, the broker added.

Telefonica shares are currently flat on the Madrid Stock Exchange, at 6.2 euros.

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