Telecom Argentina Stet - France Telecom (NYSE:TEO) Shares Gap Up on Analyst Upgrade

Key Points

• JPMorgan upgrade: JPMorgan Chase raised TEO from neutral to overweight and lifted its price target to $16 (from $12), sending shares to gap up from $11.19 to an $11.91 open (last around $11.85).
• Notable institutional inflows: several funds added or built positions recently, including Sagil Capital (~$7.63M new), Banco BTG Pactual (~$2.73M new) and RWC Asset Management (now ~1,009,244 shares after a 50.7% increase).
• Mixed analyst view and strained fundamentals: the stock has a MarketBeat consensus rating of "Hold" with a $13.87 consensus price target (2 Buy, 1 Hold, 2 Sell), while Telecom Argentina shows a $5.14B market cap, negative net margin and a negative P/E.

Shares of Telecom Argentina Stet - France Telecom S.A. (NYSE:TEO - Get Free Report) gapped up prior to trading on Wednesday after JPMorgan Chase & Co. upgraded the stock from a neutral rating to an overweight rating. The stock had previously closed at $11.19, but opened at $11.91. JPMorgan Chase & Co. now has a $16.00 price target on the stock, up from their previous price target of $12.00. Telecom Argentina Stet - France Telecom shares last traded at $11.8530, with a volume of 117,904 shares changing hands.

A number of other research analysts have also weighed in on TEO. Scotiabank lowered Telecom Argentina Stet - France Telecom from a "sector perform" rating to a "sector underperform" rating and raised their target price for the company from $8.20 to $8.60 in a report on Friday, March 27th. Zacks Research upgraded Telecom Argentina Stet - France Telecom from a "strong sell" rating to a "hold" rating in a report on Monday, February 23rd. Two investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $13.87.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of TEO. Sagil Capital LLP bought a new position in Telecom Argentina Stet - France Telecom in the 4th quarter valued at $7,629,000. Banco BTG Pactual S.A. bought a new stake in Telecom Argentina Stet - France Telecom in the third quarter worth about $2,725,000. RWC Asset Management LLP raised its position in Telecom Argentina Stet - France Telecom by 50.7% in the fourth quarter. RWC Asset Management LLP now owns 1,009,244 shares of the utilities provider's stock worth $11,717,000 after acquiring an additional 339,416 shares during the period. Marshall Wace LLP bought a new stake in Telecom Argentina Stet - France Telecom in the fourth quarter worth about $1,969,000. Finally, Two Sigma Investments LP raised its position in Telecom Argentina Stet - France Telecom by 317.8% in the third quarter. Two Sigma Investments LP now owns 204,172 shares of the utilities provider's stock worth $1,484,000 after acquiring an additional 155,299 shares during the period.

Telecom Argentina Stet - France Telecom Trading Up 6.7%

The firm has a market cap of $5.14 billion, a P/E ratio of -36.57 and a beta of 1.27. The company has a quick ratio of 0.46, a current ratio of 0.48 and a debt-to-equity ratio of 0.55. The firm's 50-day simple moving average is $11.51 and its 200 day simple moving average is $11.48.

Telecom Argentina Stet - France Telecom (NYSE:TEO - Get Free Report) last announced its quarterly earnings data on Tuesday, February 10th. The utilities provider reported $0.02 EPS for the quarter. The business had revenue of $1.35 billion for the quarter. Telecom Argentina Stet - France Telecom had a negative net margin of 2.17% and a negative return on equity of 2.53%. As a group, analysts expect that Telecom Argentina Stet - France Telecom S.A. will post 0.23 earnings per share for the current year.

Telecom Argentina Stet - France Telecom Company Profile

Telecom Argentina Stet – France Telecom NYSE: TEO is an integrated telecommunications provider based in Buenos Aires, Argentina. Originally formed through the 1990 privatization of the state-owned Empresa Nacional de Telecomunicaciones (ENTel), the company was initially backed by Italian state carrier STET and French operator France Télécom. Since its listing on the New York Stock Exchange under the ticker TEO, Telecom Argentina has evolved into one of the country's principal communications groups, offering a comprehensive portfolio of voice and data services.

The company's core business activities span fixed-line telephony, mobile services, broadband internet and digital television.

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