Zacks Investment Research downgraded shares of Telefonica SA (NYSE:TEF) from a buy rating to a hold rating in a research note published on Friday morning.

According to Zacks, “Telefonica’s continued focus on organic growth and portfolio optimization should serve it well over the long term. The company is poised to benefit from the widespread adoption of broadband and data services, pricing revision, network enhancement and strategic collaborations.  Moreover, the company’s strong presence in the Mexican wireless industry should reap substantial benefits going forward. Also, a sucessful IPO of its of its infrastructure division Telxius should boost its balance sheet by cutting significant amount of debt. Notably, the company has a debt laden balance sheet which may pose problems going ahead. Moreover, domestic competition poses a major headwind.”

Analyst Recommendations for Telefonica SA (NYSE:TEF)

A number of other equities research analysts have also recently weighed in on the stock. Goldman Sachs Group Inc. cut shares of Telefonica SA from a buy rating to a neutral rating in a research note on Tuesday, June 28th. Credit Suisse Group AG cut shares of Telefonica SA to a hold rating in a research note on Thursday, May 26th. Finally, JPMorgan Chase & Co. restated a buy rating on shares of Telefonica SA in a research note on Monday, May 23rd. Two research analysts have rated the stock with a sell rating, three have issued a hold rating and two have issued a buy rating to the stock. The stock has an average rating of Hold and an average price target of €11.00 ($12.22).

Telefonica SA (NYSE:TEF) opened at 10.14 on Friday. Telefonica SA has a one year low of $8.34 and a one year high of $13.53. The stock’s 50 day moving average is $10.07 and its 200 day moving average is $10.25. The stock has a market capitalization of $59.42 billion, a price-to-earnings ratio of 28.64 and a beta of 1.47.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in TEF. Private Advisor Group LLC purchased a new position in Telefonica SA during the second quarter worth about $108,000. Bellecapital International Ltd. purchased a new position in Telefonica SA during the second quarter worth about $119,000. Northwestern Mutual Wealth Management Co. raised its position in Telefonica SA by 23.2% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 15,545 shares of the company’s stock worth $147,000 after buying an additional 2,927 shares during the last quarter. Advisor Group Inc. purchased a new position in Telefonica SA during the second quarter worth about $148,000. Finally, WFG Advisors LP raised its position in Telefonica SA by 20.1% in the second quarter. WFG Advisors LP now owns 16,378 shares of the company’s stock worth $155,000 after buying an additional 2,741 shares during the last quarter. 1.36% of the stock is currently owned by hedge funds and other institutional investors.

Telefonica SA Company Profile

Telefonica, SA is an integrated and diversified telecommunications group operating in Europe and Latin America. The Company’s services and products include Mobile business, Fixed-line telephony business and Digital services. The Company’s segments include Telefonica Spain, Telefonica Brazil, Telefonica Germany, Telefonica UK and Telefonica Hispanoamerica.

5 Day Chart for NYSE:TEF

Get a free copy of the Zacks research report on Telefonica SA (TEF)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Receive News & Ratings for Telefonica SA Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Telefonica SA and related companies with MarketBeat.com's FREE daily email newsletter.