Telefonica Beat the European Sector by 13 Points of Profitability in the Year
After an annus horribilis such as 2020 for Telefonica on the floor, with losses of 48%, the year has started on a better footing for the firm chaired by Jose Maria Alvarez-Pallete, than in the heat of the relief that divestments represent for its voluminous debt , has opened a profitability gap of 13 points compared to the European telecommunications sector. Likewise, Telefonica is the second most bullish value on the Ibex 35 after Pharma Mar.
The sale of its Telxius tower division to American Towers for 7,700 million euros in January has been a turning point in its price, which from November lows, when its titles sank to 2.79 euros, has bounced close to 38% and has already recovered a third of the 2020 drop.
The good feelings and the expectation of new divestments have been transferred to the market consensus valuations collected by FactSet, which despite the comeback still sees its securities at 4.78 euros, which at current prices represents an upward potential of 24 % in the next 12 months. Even higher it is seen by analysis firms such as AlphaValue and Morningstar, which value it at 6.92 euros and 8.70 euros, respectively, with respective purchase recommendations on Thursday next week, Telefonica will present its annual accounts for 2020, of which the market expects to present a net profit of 1,526 million euros, 77.5% higher than that registered in 2019, when it reduced its earnings due to cost of the incentive leave plan and Mexico.
Telefonica Beat the European Sector by 13 Points of Profitability in the Year - /10