UBS Group Downgrades Telefonica Brasil (NYSE:VIV) to Sell

Key Points

• UBS downgraded Telefonica Brasil (NYSE:VIV) from a "buy" to a "sell," while analyst opinions remain mixed and MarketBeat shows a consensus rating of Hold with a consensus target price of $13.12.
• In its latest quarter Telefonica Brasil reported EPS of $0.22 (beating the $0.17 estimate) but revenue of $2.83 billion slightly missed expectations; the stock opened at $16.29 and the company has a market cap of $26.49 billion.
• Institutional activity included Royal Bank of Canada boosting its position by 30.3% in Q1, and hedge funds/other institutions currently own about 5.16% of the company's shares.

Telefonica Brasil (NYSE:VIV - Get Free Report) was downgraded by stock analysts at UBS Group from a "buy" rating to a "sell" rating in a note issued to investors on Wednesday,Finviz reports.

A number of other equities analysts also recently issued reports on the stock. Wall Street Zen upgraded shares of Telefonica Brasil from a "buy" rating to a "strong-buy" rating in a research note on Sunday, January 11th. Zacks Research raised shares of Telefonica Brasil from a "hold" rating to a "strong-buy" rating in a research note on Monday, February 9th. Weiss Ratings upgraded Telefonica Brasil from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, February 25th. Finally, Bank of America initiated coverage on Telefonica Brasil in a research report on Thursday, December 11th. They set an "underperform" rating and a $14.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $13.12.

Telefonica Brasil Stock Up 1.2%

NYSE:VIV opened at $16.29 on Wednesday. Telefonica Brasil has a 1-year low of $8.19 and a 1-year high of $16.95. The company has a 50-day moving average of $14.39 and a 200 day moving average of $13.13. The firm has a market cap of $26.49 billion, a PE ratio of 23.26, a price-to-earnings-growth ratio of 0.72 and a beta of 0.68. The company has a debt-to-equity ratio of 0.22, a current ratio of 1.00 and a quick ratio of 0.94.

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of VIV. Royal Bank of Canada lifted its position in Telefonica Brasil by 30.3% during the first quarter. Royal Bank of Canada now owns 431,051 shares of the Wireless communications provider's stock valued at $3,758,000 after acquiring an additional 100,315 shares during the last quarter. Advisors Asset Management Inc. acquired a new position in shares of Telefonica Brasil during the first quarter worth $52,000. Rhumbline Advisers increased its position in shares of Telefonica Brasil by 337.7% during the first quarter. Rhumbline Advisers now owns 4,233 shares of the Wireless communications provider's stock worth $37,000 after purchasing an additional 3,266 shares in the last quarter. Bank of Montreal Can lifted its holdings in shares of Telefonica Brasil by 5.3% during the 2nd quarter. Bank of Montreal Can now owns 54,966 shares of the Wireless communications provider's stock valued at $627,000 after purchasing an additional 2,790 shares during the last quarter. Finally, Savant Capital LLC purchased a new stake in shares of Telefonica Brasil during the 2nd quarter valued at $194,000. Hedge funds and other institutional investors own 5.16% of the company's stock.

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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