Telefónica shares correct more than 4% in the trading session this Tuesday, after soaring 6% the day before and after hearing a recommendation downgrade from Berenberg today, which has also cut the target price of the Spanish group.
One hour after the start of the session, Telefónica shares are the most bearish of the entire IBEX 35, dropping 4.16%, to 4.06% euros per share.
IG analysts explain that although Telefónica is affected by the negative bias of the Spanish market, it is also “more heavily penalized because Berenberg has lowered its recommendation from buy to hold.”
It has also cut the target price from 4.7 to 4.3 euros.
In the previous day, Telefónica shot up 6.39% encouraged by KKR’s takeover of Telecom Italia, and according to IG, “investors discounted that something similar could happen in the rest of the companies in the sector in Spain.”
However, they explain that just today, it became known that “the Government is preparing the extension of the antiopa shield to protect Telefónica, which reduces the chances of a similar movement and, therefore, that there could be strong increases in the value for an offer higher than the current price ».
Telecom Italia shares soared more than 30% in the previous session after knowing the takeover launched by KKR, and today they are up 1.82%.
In the rest of Europe, Orange, which closed the day before with increases of more than 2%, scored 0.36%.
Vodafone, for its part, which also rose more than 3% yesterday, today is down 0.7%.