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UPDATE: Stifel Nicolaus Initiates Telefonica Brasil SA with Hold on Brazilian Economic Weakness

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Stifel Nicolaus initiated coverage on Telefonica Brasil SA (NYSE: VIV) with a Hold rating on concerns of economic weakness in Brazil and rising competition.

Stifel Nicolaus commented, "We are initiating coverage of shares of Telefonica Brasil SA (ticker: VIV) with a HOLD rating. While we view VIV's dividend as attractive and believe that the company stands to benefit from continued growth in the Brazilian market for wireless services, we view (1) a weakening Brazilian economy, (2) rising competitive pressures in the Brazilian wireless market, and (3) the company's exposure to the slower growing fixed-line market as headwinds to the company's valuation in the medium term. As such, we view the company's shares as fairly valued at approximately 5.0x our 2013E EBITDA."

Telefonica Brasil SA closed at $23.84 on Tuesday.

Latest Ratings for VIV

DateFirmActionFromTo
Jul 2020ScotiaBankMaintainsSector Outperform
May 2020BarclaysMaintainsEqual-Weight
Apr 2020Goldman SachsUpgradesNeutralBuy

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Posted-In: Stifel NicolausAnalyst Color Initiation Intraday Update Analyst Ratings

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