Telefonica: BofA cuts target price

(CercleFinance.com) - BofA Global Research cut its target price for Telefonica from 5.
1 euros to 4.7 euros, maintaining its "neutral" rating on the share, a report showed on Wednesday.

In a note to clients, the broker said that Telefonica needs to reduce its Latam exposure to build a platform for sustainable deleverage, and become a credible investment case once more.

BofA added that second-quarter results should feature significant currency headwinds and new weakness in Spain due to Covid and content spin-down, expecting Ebitda to fall 17% over the quarter.

Overall, the broker thinks that the share is fairly valued at its current levels.

Copyright (c) 2020 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.