Telefonica Brasil (VIV) Downgraded to “Hold” at Zacks Investment Research

Telefonica Brasil (NYSE:VIV) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Sunday. They presently have a $18.00 target price on the Wireless communications provider’s stock. Zacks Investment Research‘s target price indicates a potential upside of 16.43% from the company’s current price.

According to Zacks, “Telefonica Brasil continues to rule the Brazilian wireless market following the establishment of Vivo as a commercial brand for all services. The company continues to invest in technology upgrades and broadband network infrastructure expansion to retain itself in the competitive industry. Moreover, the company is also optimistic about its long-term opportunities in the mobile business. In the last six months, the stock price grew 10.1% compared with the industry's loss of 1.7%. However, Telefonica Brasil continues to suffer from the impact of wireless substitution, intense competition in fixed line voice business and stringent regulatory measures. Telefonica Brasil's wireline business will suffer in future due to significant amount of line disconnections. Broadband competition will also continue to grow.”

Other equities analysts have also issued research reports about the company. Barclays raised their price objective on Telefonica Brasil from $16.00 to $17.00 and gave the stock an “overweight” rating in a report on Monday, October 16th. Royal Bank of Canada reissued a “hold” rating and set a $15.60 price target on shares of Telefonica Brasil in a report on Thursday, November 2nd. Santander lowered Telefonica Brasil from a “buy” rating to a “hold” rating in a report on Thursday, December 21st. Finally, Credit Suisse Group lowered Telefonica Brasil from an “outperform” rating to a “neutral” rating in a report on Friday. Five analysts have rated the stock with a hold rating, one has assigned a buy rating and one has issued a strong buy rating to the stock. The company presently has a consensus rating of “Hold” and an average price target of $16.53.

Telefonica Brasil (VIV) opened at $15.46 on Friday. The stock has a market capitalization of $26,107.21, a PE ratio of 19.32, a price-to-earnings-growth ratio of 1.14 and a beta of 1.36. Telefonica Brasil has a twelve month low of $13.06 and a twelve month high of $16.85. The company has a current ratio of 0.96, a quick ratio of 0.94 and a debt-to-equity ratio of 0.07.

Telefonica Brasil (NYSE:VIV) last issued its quarterly earnings data on Wednesday, October 25th. The Wireless communications provider reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.22 by $0.01. Telefonica Brasil had a return on equity of 6.29% and a net margin of 10.00%. sell-side analysts forecast that Telefonica Brasil will post 0.81 EPS for the current year.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in VIV. PNC Financial Services Group Inc. grew its holdings in shares of Telefonica Brasil by 178.1% during the second quarter. PNC Financial Services Group Inc. now owns 7,641 shares of the Wireless communications provider’s stock worth $103,000 after buying an additional 4,893 shares during the last quarter. Virtu Financial LLC purchased a new position in shares of Telefonica Brasil during the third quarter worth about $165,000. River Road Asset Management LLC purchased a new position in shares of Telefonica Brasil during the third quarter worth about $173,000. Creative Planning purchased a new position in shares of Telefonica Brasil during the fourth quarter worth about $178,000. Finally, Dynamic Technology Lab Private Ltd purchased a new position in shares of Telefonica Brasil during the third quarter worth about $181,000. 9.33% of the stock is currently owned by hedge funds and other institutional investors.

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Telefonica Brasil Company Profile

Telefonica Brasil SA is a mobile telecommunications company in Brazil offering postpaid mobile services. The Company also operates as a fixed telecommunications company in the state of Sao Paulo. The Company markets its mobile services under its Vivo brand. It offers its clients a portfolio of products, including mobile and fixed voice, mobile data, fixed broadband, ultra-fast broadband, Pay television, information technology and digital services.

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