Nur Cristiani, an analyst from Morgan Stanley, maintained the Hold rating on Telefonica (0TDE – Research Report). The associated price target remains the same with €4.70.
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Nur Cristiani has given his Hold rating due to a combination of factors impacting Telefonica’s financial performance. The company’s revenue for the first quarter exceeded expectations by 1.3%, largely driven by contributions from Germany and Hispam, while service revenue in Spain remained stable. Despite the positive revenue figures, the adjusted EBITDA was merely in line with forecasts, and the company maintained its guidance without any significant upward revision.
Moreover, Telefonica anticipates easing comparisons throughout the year and a back-end loaded free cash flow, suggesting potential challenges in maintaining consistent growth. The strategic review update is still pending, adding a layer of uncertainty to the company’s future direction. These elements combined suggest a balanced outlook, justifying the Hold rating as investors await further clarity from upcoming strategic decisions and financial performance updates.
In another report released on April 29, Barclays also maintained a Hold rating on the stock with a €4.50 price target.