Barclays Downgrades Telefonica Brasil (NYSE:VIV) to Equal Weight

Key Points

• Barclays downgraded Telefonica Brasil from "overweight" to "equal weight" and set a $16.00 target, which implies almost no upside (~0.09%) from the current price.
• Analysts are split — one Strong Buy, two Buy, three Hold and three Sell — leaving a consensus rating of "Hold" with an average price target of $13.42.
• Fundamentals show the stock near $15.99 after a recent quarter where Telefonica Brasil beat EPS estimates ($0.22 vs. $0.17) but missed revenue, with a market cap of $26B and a 52-week range of $8.19–$16.95.

Telefonica Brasil (NYSE:VIV - Get Free Report) was downgraded by stock analysts at Barclays from an "overweight" rating to an "equal weight" rating in a report issued on Thursday. They currently have a $16.00 target price on the Wireless communications provider's stock. Barclays's price target points to a potential upside of 0.09% from the stock's current price.

A number of other research analysts have also recently issued reports on the stock. Weiss Ratings upgraded shares of Telefonica Brasil from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, February 25th. Wall Street Zen upgraded Telefonica Brasil from a "buy" rating to a "strong-buy" rating in a research report on Sunday, January 11th. UBS Group cut Telefonica Brasil from a "buy" rating to a "sell" rating in a report on Wednesday. Bank of America started coverage on Telefonica Brasil in a research report on Thursday, December 11th. They issued an "underperform" rating and a $14.00 price objective for the company. Finally, Zacks Research upgraded Telefonica Brasil from a "hold" rating to a "strong-buy" rating in a report on Monday, February 9th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, three have assigned a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $13.42.

Telefonica Brasil Stock Down 1.8%

Shares of NYSE VIV opened at $15.99 on Thursday. Telefonica Brasil has a 52-week low of $8.19 and a 52-week high of $16.95. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.94 and a current ratio of 1.00. The business has a fifty day moving average of $14.48 and a two-hundred day moving average of $13.15. The stock has a market cap of $26.00 billion, a PE ratio of 22.84, a PEG ratio of 0.72 and a beta of 0.68.

Telefonica Brasil (NYSE:VIV - Get Free Report) last announced its quarterly earnings results on Monday, February 23rd. The Wireless communications provider reported $0.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.17 by $0.05. The firm had revenue of $2.83 billion during the quarter, compared to the consensus estimate of $2.88 billion. Telefonica Brasil had a net margin of 10.42% and a return on equity of 9.15%. As a group, equities research analysts expect that Telefonica Brasil will post 0.6 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Rhumbline Advisers increased its stake in shares of Telefonica Brasil by 337.7% in the 1st quarter. Rhumbline Advisers now owns 4,233 shares of the Wireless communications provider's stock valued at $37,000 after buying an additional 3,266 shares during the period. Arax Advisory Partners increased its position in Telefonica Brasil by 54.4% in the fourth quarter. Arax Advisory Partners now owns 3,773 shares of the Wireless communications provider's stock worth $45,000 after purchasing an additional 1,330 shares during the period. Advisors Asset Management Inc. acquired a new stake in Telefonica Brasil in the first quarter worth about $52,000. EverSource Wealth Advisors LLC raised its holdings in Telefonica Brasil by 214.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,766 shares of the Wireless communications provider's stock worth $54,000 after purchasing an additional 3,248 shares during the last quarter. Finally, PNC Financial Services Group Inc. lifted its position in Telefonica Brasil by 45.7% during the 2nd quarter. PNC Financial Services Group Inc. now owns 5,163 shares of the Wireless communications provider's stock valued at $59,000 after purchasing an additional 1,619 shares during the period. 5.16% of the stock is currently owned by institutional investors.

Telefonica Brasil Company Profile

Telefônica Brasil SA, commonly marketed under the Vivo brand, is one of Brazil's largest telecommunications providers, offering a broad range of consumer and enterprise communications services. The company's core activities include mobile voice and data services, fixed-line telephony, broadband internet (including fiber-to-the-home), and pay-TV solutions. It also provides ICT and managed services for business customers, such as cloud, data center, connectivity, Internet of Things (IoT) and security solutions.

Vivo operates a nationwide network across Brazil and serves both individual consumers and corporate clients.

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