Telefonica SA (NYSE:TEF) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Wednesday.
According to Zacks, “Shares of Telefonica have lost more than the Zacks-categorized ‘Diversified Comm Services’ Market on a year-to-date basis due to stiff competition in the domestic and Latin-American markets. Moreover, Telefonica was recently downgraded by Moody' Investors Service following its debt-reduction advice to the company by the end of 2016. The fallout of the company’s IPO plans for its infrastructure division – Telxius – was a major setback. Telefonica also attempted to establish its U.K. wireless unit, O2 UK, as an IPO to lessen its debt burden. However, Telefonica should benefit from the launch of video services in several Latin-American markets, widespread adoption of broadband and data services, pricing revision, network enhancement and strategic collaborations, continued focus on organic growth, portfolio optimization and the digital world.”
TEF has been the subject of a number of other research reports. JPMorgan Chase & Co. restated a “buy” rating on shares of Telefonica SA in a research report on Thursday, October 13th. Credit Suisse Group AG upgraded Telefonica SA to a “buy” rating in a research report on Friday, October 28th. Nord/LB set a €11.50 ($11.98) price target on Telefonica SA and gave the company a “buy” rating in a research report on Friday, November 4th. Bank of America Corp. set a €9.60 ($10.00) price target on Telefonica SA and gave the company a “sell” rating in a research report on Wednesday, August 31st. Finally, Goldman Sachs Group Inc. set a €9.60 ($10.00) price target on Telefonica SA and gave the company a “neutral” rating in a research report on Wednesday, September 21st. Five investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and seven have given a buy rating to the stock. Telefonica SA currently has a consensus rating of “Hold” and a consensus target price of $10.09.
Telefonica SA (NYSE:TEF) traded down 0.77% on Wednesday, reaching $9.06. 420,616 shares of the company’s stock were exchanged. Telefonica SA has a 1-year low of $8.15 and a 1-year high of $11.43. The company has a 50 day moving average price of $8.77 and a 200-day moving average price of $9.60. The company has a market capitalization of $44.48 billion, a PE ratio of 23.17 and a beta of 1.43.
A number of institutional investors have recently added to or reduced their stakes in TEF. Private Advisor Group LLC acquired a new stake in Telefonica SA during the second quarter valued at about $108,000. Sei Investments Co. increased its stake in Telefonica SA by 31.4% in the third quarter. Sei Investments Co. now owns 10,905 shares of the company’s stock valued at $110,000 after buying an additional 2,607 shares in the last quarter. Johnson Investment Counsel Inc. acquired a new stake in Telefonica SA during the third quarter valued at about $112,000. Bellecapital International Ltd. acquired a new stake in Telefonica SA during the second quarter valued at about $119,000. Finally, Stevens Capital Management LP acquired a new stake in Telefonica SA during the third quarter valued at about $128,000. 1.28% of the stock is currently owned by hedge funds and other institutional investors.
About Telefonica SA
Telefonica, SA is an integrated and diversified telecommunications group operating in Europe and Latin America. The Company’s services and products include Mobile business, Fixed-line telephony business and Digital services. The Company’s segments include Telefonica Spain, Telefonica Brazil, Telefonica Germany, Telefonica UK and Telefonica Hispanoamerica.
Get a free copy of the Zacks research report on Telefonica SA (TEF)
For more information about research offerings from Zacks Investment Research, visit Zacks.com