Stock Price & Analysis

Based on the provided data and recent news, here's a comprehensive analysis of TEF stock:

Technical Analysis

The stock is currently showing a bearish trend, with the latest closing price at $4.28 on February 14, 2025, down 1.38% in regular trading hours. The stock has been trading in a relatively tight range between $4.27-$4.31.

Recent Developments

• JPMorgan has been hired to manage the sale of Telefonica's Mexican operations
• The company is also looking to sell its Argentine business before its annual shareholders meeting (typically in April/May)
• Barclays recently raised their price target from EUR 4.60 to EUR 4.70 while maintaining an Equal Weight rating

Financial Snapshot

Key Financial Metrics:

• Total Revenue: $42.06B
• Net Income: $1.89B
• Gross Profit: $10.84B
• Current Ratio: 0.98
• Debt to Equity: 143.14%

Valuation Metrics

The stock appears reasonably valued with:

• P/E Ratio: 10.86x
• EV/EBITDA: 5.09x
• Price/Sales: 0.49x
• Price/Book: 1.08x
• Dividend Yield: 8.71%

Investment Outlook The current market sentiment appears cautious due to:

1. Ongoing asset sales in Latin America to reduce debt
2. Recent leadership changes affecting strategic direction
3. High debt-to-equity ratio (143.14%) indicating significant leverage
4. Attractive dividend yield of 8.71%, but sustainability needs monitoring given the debt levels

Recommendation Given the current technical weakness, high debt levels, and ongoing restructuring, it would be prudent to HOLD rather than initiate new positions at current levels. While the dividend yield is attractive, investors should wait for more clarity on the company's asset sales and debt reduction progress.

Based on the provided data and market analysis, here's the price prediction for TEF stock in 2025:

Telefónica (TEF) stock is expected to reach $4.85 by the end of 2025, representing a potential upside of approximately 13% from current levels. This projection is supported by the company's improving technical indicators, with RSI at 63.69 showing moderate bullish momentum, and positive MACD divergence signaling potential upward trend continuation.

The stock has established strong support at the $4.20 level based on the 60-day moving average, while facing resistance near $4.50 as indicated by the upper Bollinger Band. The positive Bollinger Band width (BBW) of 20.01 suggests healthy volatility, with price currently trading in the upper band region (BBP: 0.73), indicating sustained bullish momentum.

The target price is derived from technical analysis showing an ascending triangle pattern formation, combined with improving market sentiment and the stock's historical trading range. The primary catalyst for this upward movement would be the company's continued operational efficiency improvements and potential market share gains in its core markets.

The S1 support level for TEF Stock is $4.2 ,The R1 resistant level for TEF Stock is $4.33.

As of the end of day on 2025-02-21, the price of TEF Stock was $4.32.

The target price for TEF Stock according to analyst rating is 4.97, with the highest price target at 4.97 and the lowest at 4.97. Analysts have a Hold rating on TEF Stock overall.

The market cap of TEF is $24.5B.

Based on the provided data and recent market developments, here's a concise analysis of TEF's valuation:

Current Valuation Metrics

• EV/EBITDA of 4.93x (2023) shows the stock is trading below industry averages
• P/B ratio of 1.39x indicates reasonable valuation relative to book value
• High dividend yield of 8.32% suggests attractive income potential

Recent Performance & Fundamentals

• Revenue grew to $43.95B in 2023 from $42.06B in 2022
• However, net income turned negative to -$1.24B in 2023 from $1.89B profit in 2022
• Gross margin improved to 27.25% from 25.77%

Key Recent Developments

• Hired JPMorgan to manage sale of Mexican operations
• Looking to sell Argentine business before annual shareholders meeting
• Barclays recently raised price target to EUR 4.70 while maintaining Equal Weight rating

Technical Indicators

• RSI(14) at 63.69 indicates approaching overbought territory
• MACD showing positive momentum with 0.06
• Trading above 20-day SMA of 4.09, suggesting short-term uptrend

Conclusion: TEF appears fairly valued to slightly undervalued at current levels considering:

• Attractive valuation multiples below industry averages
• Strategic restructuring initiatives to improve profitability
• However, challenges remain with negative net income and high debt levels
• Technical indicators suggest caution in short term

Telefonica, S.A. is an integrated and diversified telecommunications group operating in Europe and Latin America. The Company's services and products include Mobile business, Fixed-line telephony business and Digital services. Its segments include Telefonica Spain, Telefonica Brazil, Telefonica Germany, Telefonica United Kingdom and Telefonica Hispanoamerica (formed by the Company's operators in Argentina, Chile, Peru, Colombia, Mexico, Venezuela, Ecuador and Uruguay). These segments are engaged in activities relating to wireline, wireless, cable, data, Internet and television (TV) businesses and other digital services in accordance with each location. It offers a range of mobile and related services and products to personal and business customers. It offers traditional fixed telecommunication services, Internet and broadband multimedia services and data and business-solutions services. It offers a range of digital services, such as Internet of Things (IoT).

Based on the provided data and recent market developments, here's a price prediction analysis for Telefonica (TEF) stock by 2030:

TEF stock is projected to reach $6.20 by 2030, driven by the company's strategic asset sales in Latin America and focus on 5G infrastructure investments. The recent appointment of new leadership and restructuring efforts, including the sale of Mexican and Argentine operations, positions the company for improved operational efficiency and debt reduction.

The technical analysis shows a consolidation pattern with strong support at $3.80 and resistance at $4.50, suggesting potential for upward momentum if the company successfully executes its transformation strategy.

TEF has a total of 104142 employees.