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IBEX 35: Is Telefonica a Buy Before Earnings?
Global Markets

IBEX 35: Is Telefonica a Buy Before Earnings?

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Spanish telecom company Telefonica will report its first quarter results for 2023 on May 11. Is it the right time to invest in TEF stock?

Telefonica SA (ES:TEF) is a leading telecommunications company in Spain, providing a comprehensive range of services, including voice, data, television, and Internet access, to both consumers and businesses.

The company will report its first-quarter earnings for 2023 on Thursday, May 11. According to TipRanks, the consensus EPS forecast is €0.08 per share, which is lower than the EPS of €0.12 reported in the same period last year.

The company delivered a stable performance in 2022 despite challenging economic conditions. For 2023, the company is committed to higher investments in connectivity projects. The company expects its revenue to grow at a “low single-digit rate” in 2023, similar to the 4% growth reported in 2022. Its core earnings are also expected to follow a similar pace in 2023.

Ahead of the quarter’s results, analysts have a neutral take on the company’s stock. 14 days ago, Citigroup analyst Georgios Ierodiaconou reiterated his Hold rating on the stock and predicted a 2% growth in the share price.

Will Telefonica Stock Go Up?

According to TipRanks, TEF stock has a Hold rating backed by a total of eight recommendations.

At an average price target of €4.24, analysts predict an upside of 5.9% on the share price.

Ferrovial Share Price Forecast

Spanish infrastructure company Ferrovial SA (ES:FER) will also report its Q1 2023 earnings on May 11. Analysts have forecast sales to be around €1.65 billion for the quarter.

The company operates as a prominent contractor in heavy infrastructure construction. This includes the design, construction, and maintenance of various projects, including roads, tunnels, highways, and more.

The company’s stock has gained almost 30% in the last year, and hence analysts are not anticipating any further upside in the share price.

Overall, FER stock has a Moderate Buy rating on TipRanks based on two Hold and one Buy recommendations. The average price forecast is €28.33, which is around 2% lower than the current trading levels.

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