Telefonica downgraded to Hold from Buy at Deutsche Bank

Deutsche Bank analyst Keval Khiroya downgraded Telefonica to Hold from Buy with a price target of EUR 5, down from EUR 6.40. The analyst sees limited scope for further upgrades to earnings estimates and expects investor focus to return to the company’s leverage and valuation. In the near term the firm believes there could be dividend risk for Telefonica at a time when peers are growing payouts.