Deutsche Bank Downgrades Telefonica S.A. (TEF) to Hold; Pause for Breath After Share Price Recovery

Deutsche Bank downgraded Telefonica S.A. (NYSE: TEF) from Buy to Hold.

Deutsche analyst says, "Telefonica's share price has risen 15% since early September, outperforming the sector by 7%. We expect growth trends to continue to recover in 2012 but we believe the shares are unlikely to continue to outperform near-term as (1) the combination of the share price outperformance and small downgrades means Telefonica's valuation discount has closed; (2) the Q3 results could prove to be a negative catalyst as the share price has improved materially before the trends have and (3) we believe near-term earnings momentum in Brazil is negative."

For more ratings news on Telefonica S.A. click here and for the rating history of Telefonica S.A. click here.

Shares of Telefonica S.A. closed at $21.37 yesterday.

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