Barclays Upgrades Telesp (TSP) to Overweight

Barclays upgraded Telesp (NYSE: TSP) from Underweight to Overweight. PT increased from $22 to $28.

Barclays analyst says, "We prefer TSP over Tele Norte Leste (NYSE: TNE) - Proforma for the Vivo Participacoes (NYSE: VIV) merger, TSP derived 53% of 2010 revenue from faster-growing mobile services in 2010, versus 26% at peer Tele Norte Leste, and TSP shares are more attractively valued than TNE's, with TSP trading on a 2011 P/E of 10.2x, EV/EBITDA of 4.4x, and a dividend yield of 9.4%, compared to TNE on P/E of 13.7x, EV/EBITDA of 4.6x, and a dividend yield of 2.6%. Our TSP projections do not include any of the synergies that management expects from the VIV integration."

For more ratings news on Telesp click here and for the rating history of Telesp click here.

Shares of Telesp closed at $26.13 yesterday.

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