UPDATE: Jefferies Initiates Portugal Telecom at Hold on Weak Fundamentals

Jefferies initiated coverage on Portugal Telecom

with a Hold rating. Jefferies said, "PT is in the strategic vanguard of the European incumbents, but its fundamental issues of weak mobile pricing power and a consumer under immense duress will take time to work through. Unfortunately, given where we are in the product cycle in Brazil, Oi can't quite tip the group back into growth. For some, PT may represent a levered play on an end to the European debt crisis. We are more cautious and initiate with a Hold." Portugal Telecom closed at $5.01 on Friday.