Why Are Telefonica Shares Trading Lower Today?

Barclays analyst Mathieu Robilliard downgraded Telefonica SA TEF to Underweight from Equal Weight with a price target of €3.40 ($3.94), down from €4, implying a 13.7% downside.
The analyst views the recent re-rating of the shares as overdone, saying Telefonica's operating free cash flow in Spain will remain under pressure with competition still high.
Further, it is unlikely that the company's expensive football rights will get renewed at a lower price, Robilliard notes.
Related Content: Telefonica Weighs Stake Sale In Spanish Fiber Network: Bloomberg
Price Action: TEF shares traded lower by 3.72% at $4.40 in the premarket session on the last check Friday.

Momentum76.62

Growth17.62

Quality15.79

Value40.15

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Medium

Long

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