DJ Deutsche Bank Lifts Telefonica, Cuts Elisa -- Market Talk
Name LetzterVeränderung§ TELEFONICA ORD 8.752 +0.115 (1.33 %)
1207 GMT Deutsche Bank switches its ratings on two European telecoms companies, raising Telefonica to hold from sell, and cutting Elisa to sell from hold.
Telefonica's share price has slumped 15.4% this year, and DB says it is this lower price that drives its raise. While telecommunications demand in the Spanish market remains depressed, the bank says it has now digested that sector's pay-TV problems. Exposure in Brazil should also help the company through 2017, the bank adds. The Nordic sector, meanwhile, is heavily exposed to the wireless market and to roaming regulation owing to the region's high numbers of outbound tourists. . (david.hodari@wsj.com; @davidhodari)
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