Zacks’ analyst wrote, “We are maintaining our Neutral recommendation on Telefonica. The company’s first quarter earnings were below the Zacks Consensus Estimate and the year-ago quarter, mainly due to weak Spanish operations. We are impressed with the company’s efforts to improve efficiency, expand its broadband and data services through Global Resources and capture savings from restructuring plans across various countries. Such efforts would lead to strong commercial activity, the main goal of the company, and translate into strong revenue and profitability, thereby increasing shareholder returns. However, these initiatives will increase commercial expenses, which will weigh on short-term margins. Further, Telefonica remains challenged by a weak domestic economy, the slowdown in Brazil, the ongoing reduction in mobile termination rates, a highly leveraged balance sheet and growing competition.”
Telefonica SA traded down 4.51% on Tuesday, hitting $11.44. Telefonica SA has a 52-week low of $11.84 and a 52-week high of $24.82. The company has a market cap of $51.171 billion and a price-to-earnings ratio of 9.52.
Separately, analysts at UBS AG (NYSE: UBS) upgraded shares of Telefonica SA from a “sell” rating to a “neutral” rating in a research note to investors on Wednesday, April 11st.
Telefonica S.A. (Telefonica) together with its subsidiaries and investees operates in the telecommunications, media and contact center industries.