Thursday, May 19

Telefónica leads the Ibex 35 due to rumors of mergers in Vodafone Italy

Vodafone appreciates strongly this Monday on the London Stock Exchange to 123.22 pence in the pound sterling thanks to a rise of 4.9%. This Monday it was known that the telecommunications operator is negotiating the merger of its subsidiary in Italy with the French Iliad. This operation would give rise to a new operator with a 36% share of the mobile market in Italy. Vodafone, in fact, also considered a merger of its British division with Hutchison Three.

This advance by Vodafone is having replicas in the main telecommunications operators in Europe. In the Ibex 35, Telefónica appreciates 2.69% to 4.11 euros per share and leads the advances of the Spanish selective. British Telecom (BT) rises more than 2% while Orange exceeds 1.5%.

Bernstein and JB Capital Markets adjust their valuations

Analysts at the German bank Bernstein today lowered their target price for Telefónica’s shares from 4.60 to 4 euros. This represents a lower level than its stock market price, which implies that the German entity no longer sees potential in the ‘teleco’ directed by José María Álvarez-Pallete.

On the other hand, from the Spanish analysis firm JB Capital Markets they have reiterated their purchase advice, the best possible, on the ‘teleco’, to which they give a valuation of 5.93 euros, which represents a 45% upside potential on the Ibex 35 for Telefónica shares.

The Bloomberg market consensus includes an average twelve-month target price of 4.56 euros per share, that is, a potential 11.5% from current prices. Close to half of the analysts who cover the title give a ‘buy’ recommendation, compared to five (14.3% of the consensus) who advise ‘sell’ and fourteen (the remaining 40%) who opt for ‘hold’ ‘.