Nur Cristiani, an analyst from Morgan Stanley, reiterated the Hold rating on Telefonica (0TDE – Research Report). The associated price target is €4.70.
Nur Cristiani has given his Hold rating due to a combination of factors that reflect Telefonica’s current financial performance and strategic outlook. The company’s Q4 results showed a positive trend with revenues and adjusted EBITDA outperforming expectations by 2.8% and 3.0%, respectively. However, despite these encouraging figures, the increase in capital expenditure by 8% due to foreign exchange impacts and the strategic review planned for the second half of the year introduce elements of uncertainty.
Furthermore, while Telefonica’s free cash flow is slightly ahead and net debt is lower than anticipated, the company’s guidance for 2025 indicates only moderate growth in key financial metrics such as revenue and EBITDA. The dividend per share remains in line with expectations, but the overall leverage and the strategic review outcomes could impact future performance. These mixed signals suggest a cautious approach, justifying the Hold rating as investors await more clarity from the upcoming strategic review.
According to TipRanks, Cristiani is ranked #7110 out of 9385 analysts.
In another report released yesterday, UBS also maintained a Hold rating on the stock with a €3.90 price target.