UPDATE: Goldman Sachs Upgrades Telefonica to Neutral on Receding Risks

Goldman Sachs published a report that downgraded Telefonica SA (NYSE: TEF) from Sell to Neutral.

Goldman Sachs noted, "We upgrade Telefonica to Neutral from Sell and remove the stock from our Conviction Sell List. Stronger than expected domestic cost cutting in 4Q along with substantially improved KPIs lead us to forecast moderating Spanish EBITDA declines. With LatAm growth set to continue, we now expect group profitability to stabilize in 2H2013, ahead of many of its incumbent peers."

Telefonica closed at $13.02 on Thursday.

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