Telefonica "buy"

06/22/07 - Ibersecurities

LONDON, June 22 (newratings.com) - Analysts at Ibersecurities maintain their "buy" rating on Telefonica SA (TNE5). The target price is set to €20.

In a research note published this morning, the analysts mention that according to press reports, the company is likely to be fined by the European Commission (EC) in the forthcoming days for exploiting its leading position in the Spanish ADSL market. Telefonica has confirmed its interest to acquire a 50% stake in Vivo and an additional 5% stake in China Netcon. The company also aims at making small acquisitions to reinforce its Latin American operating position, the analysts say. These objectives indicate Telefonica’s intention to grow in areas that have substantial growth prospects, Ibersecurities adds.