UPDATE: Goldman Sachs Reiterates on Telecom Italia following announcement of New 2014-2016 Plan

In a report published on Wednesday, Goldman Sachs analyst Nick Brown reiterated a Buy rating on Telecom Italia TI but lowered the price target from €.93 to €.87. In the report, Goldman Sachs says "Following the announcement of Telecom Italia's new 2014-16 plan, we still believe an attempt to dispose of TIM Brasil will be the best route for TI to pay down debt and invest enough to transform the domestic business. Given the board's decision to avoid a larger capital raise for now, we believe it is unlikely the controlling shareholder Telco SpA would support a further capital raise in the near term (c.€3 bn). If TI takes no further action beyond the sale of its stake in Telecom Argentina and the €1.3 bn mandatory convertible bond it has issued, we believe it runs the risk of a credit rating downgrade, which we believe would make a TIM Brasil disposal more likely." Telecom Italia closed on Tuesday at €.68.