Zacks Investment Research Lowers Telefonica SA (NYSE:TEF) to Hold

Telefonica SA (NYSE:TEF) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Wednesday, October 18th.

According to Zacks, “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 and portfolio optimization. Telefonica is also capitalizing on the opportunities in the digital world. However, the company continues to face stiff competition in the domestic and Latin-American markets. Notably, in Latin America, Telefonica competes with large global telecom operators like AT&T and America Movil. The fallout of the company’s IPO plans and downgradation by Moody's Investors Service was a major setback, apart from the company’s debt laden balance sheet. Over the past three months, shares of Telefonica declined 2.2% as against the industry's loss of 0.8%.”

TEF has been the topic of several other research reports. JPMorgan Chase & Co. cut Telefonica SA from an “overweight” rating to a “neutral” rating in a report on Tuesday, September 5th. BidaskClub cut Telefonica SA from a “buy” rating to a “hold” rating in a report on Saturday, August 12th. ValuEngine cut Telefonica SA from a “strong-buy” rating to a “buy” rating in a report on Friday, September 1st. Citigroup Inc. reiterated a “buy” rating on shares of Telefonica SA in a report on Monday, September 4th. Finally, Berenberg Bank raised Telefonica SA from a “hold” rating to a “buy” rating in a research note on Wednesday, September 27th. Six analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and a consensus price target of $11.00.

Telefonica SA (NYSE TEF) traded down 1.916% during midday trading on Wednesday, hitting $9.985. 2,106,666 shares of the stock were exchanged. Telefonica SA has a 12-month low of $8.15 and a 12-month high of $11.64. The stock has a market cap of $51.15 billion, a price-to-earnings ratio of 16.810 and a beta of 1.31. The firm has a 50 day moving average of $10.66 and a 200-day moving average of $10.90.

Telefonica SA (NYSE:TEF) last announced its earnings results on Thursday, July 27th. The utilities provider reported $0.16 EPS for the quarter, missing the consensus estimate of $0.18 by ($0.02). The business had revenue of $14.24 billion for the quarter, compared to the consensus estimate of $15.01 billion. Telefonica SA had a return on equity of 29.02% and a net margin of 5.18%. On average, equities analysts expect that Telefonica SA will post $0.89 earnings per share for the current year.

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A number of institutional investors have recently made changes to their positions in the stock. Macquarie Group Ltd. raised its position in Telefonica SA by 11.0% in the 1st quarter. Macquarie Group Ltd. now owns 6,756,516 shares of the utilities provider’s stock valued at $75,605,000 after buying an additional 667,294 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its stake in Telefonica SA by 244.3% in the second quarter. Arrowstreet Capital Limited Partnership now owns 5,234,111 shares of the utilities provider’s stock valued at $54,382,000 after purchasing an additional 3,713,751 shares in the last quarter. Goldman Sachs Group Inc. grew its stake in Telefonica SA by 7.5% in the second quarter. Goldman Sachs Group Inc. now owns 1,868,884 shares of the utilities provider’s stock valued at $19,418,000 after purchasing an additional 130,157 shares in the last quarter. Parametric Portfolio Associates LLC grew its stake in Telefonica SA by 21.0% in the second quarter. Parametric Portfolio Associates LLC now owns 1,502,523 shares of the utilities provider’s stock valued at $15,611,000 after purchasing an additional 260,372 shares in the last quarter. Finally, Aperio Group LLC grew its stake in Telefonica SA by 14.6% in the third quarter. Aperio Group LLC now owns 1,017,636 shares of the utilities provider’s stock valued at $10,980,000 after purchasing an additional 129,466 shares in the last quarter. 0.92% of the stock is currently owned by institutional investors and hedge funds.

Telefonica SA Company Profile

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. Its segments include Telefonica Spain, Telefonica Brazil, Telefonica Germany, Telefonica United Kingdom and Telefonica Hispanoamerica (formed by the Company’s operators in Argentina, Chile, Peru, Colombia, Mexico, Venezuela and Central America, Ecuador and Uruguay).

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Analyst Recommendations for Telefonica SA (NYSE:TEF)

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