Credit Suisse lowers price target for Telefónica and Telefónica Germany

Maintains recommendation to 'overweight' the operator's German subsidiary

MADRID, 23 May. (EUROPA PRESS) -

Credit Suisse has reduced this Monday by 2.5% and 0.9% the target prices of Telefónica and Telefónica Germany, respectively, to leave them at a total of 4.68 euros and 3.09 euros per share after the publication of results last week.

The new valuations of the Swiss firm place the group's securities with a price slightly higher than the price set by the entity and the German subsidiary with a path of 10.37% compared to the 2.8 euros at which it is listed at the opening of this Monday's session.

For this reason, the Swiss entity continues to recommend 'overweighting' the shares of Telefónica Germany in the portfolio, while issuing a neutral advice on the titles of the Spanish operator.

Credit Suisse has justified the slight cut in the valuation with an increase in tax payments in Germany and a reduction in the contribution expected from Oi's mobile assets, whose acquisition was closed a few weeks ago.

The financial entity, however, has improved its revenue outlook for 2023 by 0.6% and its gross operating profit (Ebitda) forecasts for the next year by 1.6%.

In the report, Credit Suisse has also pointed out that the tariff change in Spain with the arrival of MiMovistar translates into better portability figures for the firm, although it believes that the average payment per client (Arpu) could be reduced.

In addition, it has also shown its expectation that the price of energy, and the pressure it brings to Ebitda, will have reached its peak this quarter.

However, the entity has underlined that Telefónica's results have been "solid". The share is one of those that has grown the most on the Ibex so far this year with gains above 22% in a general bearish global context.