Telefonica Brasil (VIV) Rating Lowered to Strong Sell at Zacks Investment Research

Telefonica Brasil (NYSE:VIV) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report released on Friday.

According to Zacks, “Telefonica Brasil continues to suffer from the losses in fixed line voice business. Impact of wireless substitution remains high as a growing number of customers are taking advantage of discounted calling rate offers from national wireless operators. The company is also experiencing revenue loss especially in Pay-TV and Fixed access business units owing to an increase in MMDS customer churn following spectrum acquisition by 4G operators. Competition within the mobile business is expected to intensify with new rivals entering the market and rapid development of new technologies, products and services. Competition in the local phone market is also intense and the long-distance market has matured. However, the company is offering bundled services, which are improving its competitive position and expanding its opportunities. The company outperformed the industry on an average in the last three months.”

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Other research analysts have also recently issued research reports about the stock. Royal Bank of Canada set a $16.00 price target on shares of Telefonica Brasil and gave the stock a “hold” rating in a report on Friday, March 23rd. Santander cut shares of Telefonica Brasil from a “buy” rating to a “hold” rating in a report on Thursday, December 21st. Goldman Sachs started coverage on shares of Telefonica Brasil in a report on Tuesday, April 3rd. They issued a “neutral” rating and a $18.00 price target on the stock. Credit Suisse Group cut shares of Telefonica Brasil from an “outperform” rating to a “neutral” rating in a report on Friday, January 19th. Finally, Barclays upped their price target on shares of Telefonica Brasil from $17.50 to $18.00 and gave the stock an “overweight” rating in a report on Tuesday, March 20th. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating, one has assigned a buy rating and one has issued a strong buy rating to the company’s stock. Telefonica Brasil has an average rating of “Hold” and a consensus target price of $17.00.

Shares of VIV stock opened at $15.07 on Friday. The company has a current ratio of 0.94, a quick ratio of 0.92 and a debt-to-equity ratio of 0.08. Telefonica Brasil has a 1 year low of $13.06 and a 1 year high of $17.33. The firm has a market cap of $25,837.02, a price-to-earnings ratio of 17.73, a price-to-earnings-growth ratio of 1.19 and a beta of 1.38.

Telefonica Brasil (NYSE:VIV) last released its quarterly earnings results on Wednesday, February 21st. The Wireless communications provider reported $0.28 earnings per share for the quarter, topping the consensus estimate of $0.25 by $0.03. The firm had revenue of $3.40 billion for the quarter. Telefonica Brasil had a net margin of 10.65% and a return on equity of 6.60%. sell-side analysts expect that Telefonica Brasil will post 1.02 EPS for the current fiscal year.

Several institutional investors have recently added to or reduced their stakes in the company. Advisor Group Inc. grew its position in Telefonica Brasil by 48.6% in the fourth quarter. Advisor Group Inc. now owns 10,353 shares of the Wireless communications provider’s stock worth $153,000 after acquiring an additional 3,387 shares in the last quarter. Virtu Financial LLC purchased a new position in Telefonica Brasil in the third quarter worth $165,000. Dynamic Technology Lab Private Ltd purchased a new position in Telefonica Brasil in the third quarter worth $181,000. Creative Planning purchased a new position in Telefonica Brasil in the fourth quarter worth $178,000. Finally, Quantitative Systematic Strategies LLC purchased a new position in Telefonica Brasil in the fourth quarter worth $249,000. 9.60% of the stock is currently owned by hedge funds and other institutional investors.

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Telefonica Brasil Company Profile

Telefônica Brasil SA provides mobile and fixed line telecommunications services to residential and corporate customers in Brazil. Its fixed line services portfolio includes local, domestic long-distance, and international long-distance calls; and mobile portfolio comprises voice and broadband Internet access through 3G and 4G, as well as mobile value-added services and wireless roaming services.

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