Telefonica Brasil (VIV) Downgraded by Zacks Investment Research to “Sell”

Zacks Investment Research downgraded shares of Telefonica Brasil (NYSE:VIV) from a hold rating to a sell rating in a research report sent to investors on Tuesday morning.

According to Zacks, “Telefonica Brasil continues to suffer from the losses in fixed line voice business. In fourth-quarter 2017, fixed voice lines were 13.837 million (down 3.5% y/y). As of Dec 31, 2017, total fixed access lines were 22.857 million, reflecting a decline of 2.1% year-over-year. The company also lost prepaid connections due to significant migration of prepaid clients to control plans. Despite such headwinds, the company posted impressive fourth-quarter 2017 financial results, where the company’s bottom line beat the Zacks Consensus Estimate and the top line grew year-over-year. The company’s improved mobile business raise optimism, with a subscriber base of 74.940 million (up 1.6% year over year). The company performed well in its postpaid segment also. In fact, in the past three months, the stock grew 3.6% as against the industry’s loss of 1.5%.”

A number of other analysts also recently weighed in on the stock. Credit Suisse Group downgraded shares of Telefonica Brasil from an outperform rating to a neutral rating in a research report on Friday, January 19th. Santander downgraded shares of Telefonica Brasil from a buy rating to a hold rating in a research report on Thursday, December 21st. One investment analyst has rated the stock with a sell rating, four have issued a hold rating, one has issued a buy rating and one has issued a strong buy rating to the company. Telefonica Brasil presently has a consensus rating of Hold and a consensus price target of $16.53.

Shares of Telefonica Brasil (NYSE:VIV) opened at $15.54 on Tuesday. The firm has a market cap of $26,985.33, a PE ratio of 18.07, a PEG ratio of 1.19 and a beta of 1.39. The company has a debt-to-equity ratio of 0.08, a current ratio of 0.94 and a quick ratio of 0.92. Telefonica Brasil has a 1 year low of $13.06 and a 1 year high of $17.33.

Telefonica Brasil (NYSE:VIV) last released its earnings results on Wednesday, February 21st. The Wireless communications provider reported $0.28 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.25 by $0.03. The firm had revenue of $3.40 billion for the quarter. Telefonica Brasil had a net margin of 10.65% and a return on equity of 6.60%. research analysts anticipate that Telefonica Brasil will post 1.06 earnings per share for the current fiscal year.

Hedge funds have recently made changes to their positions in the stock. Advisor Group Inc. grew its position in Telefonica Brasil by 48.6% during the 4th quarter. Advisor Group Inc. now owns 10,353 shares of the Wireless communications provider’s stock valued at $153,000 after purchasing an additional 3,387 shares during the last quarter. Virtu Financial LLC purchased a new stake in Telefonica Brasil during the 3rd quarter valued at about $165,000. Dynamic Technology Lab Private Ltd purchased a new stake in Telefonica Brasil during the 3rd quarter valued at about $181,000. Creative Planning purchased a new stake in Telefonica Brasil during the 4th quarter valued at about $178,000. Finally, Cambridge Investment Research Advisors Inc. purchased a new stake in Telefonica Brasil during the 3rd quarter valued at about $262,000. 9.60% of the stock is currently owned by institutional investors.

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Telefonica Brasil Company Profile

Telefonica Brasil SA is a mobile telecommunications company in Brazil offering postpaid mobile services. The Company also operates as a fixed telecommunications company in the state of Sao Paulo. The Company markets its mobile services under its Vivo brand. It offers its clients a portfolio of products, including mobile and fixed voice, mobile data, fixed broadband, ultra-fast broadband, Pay television, information technology and digital services.

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