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UPDATE: Bank of America Upgrades Telefonica Brasil to Buy on Short-Term Earnings Confidence

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Bank of America upgraded Telefonica Brasil (NYSE: VIV) from Neutral to Buy and raised the price target from $26.00 to $28.00.

Bank of America noted, "We upgrade VIV to Buy from Neutral and raise our price objective to R$56 ($28) from R$53 ($26), implying 21% upside potential (including 9% dividend yield). We feel more confident with VIV's short-term earnings outlook, given (1) some stability shown in the fixed-line business (36% of revenues), (2) wireless pricing pressure seems to have eased recently, and (3) the solid cost-cutting demonstrated in 4Q12 (EBITDA beat by 5%). With an estimated dividend yield of 9%, we see VIV as a solid option for those looking for a defensive strategy. Our preferred names within LatAm telcos now are VIV and Entel Chile."

Telefonica Brasil closed at $25.18 on Monday.

Posted-In: Bank of AmericaAnalyst Color Upgrades Analyst Ratings

 

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