Update shared on02 Sep 2025
Fair value Increased 1.21%The consensus Analyst Price Target for Telefónica edged up slightly from €4.35 to €4.41, primarily due to updated foreign exchange impacts and minor model adjustments, with no material change in business fundamentals.
Analyst Commentary
- Updated foreign exchange moves impacting future earnings estimates.
- Recent company results prompting revisions to financial models.
- Minor adjustments in analysts’ assumptions rather than fundamental business changes.
- Neutral overall sentiment, as reflected in the maintained Equal Weight rating.
- Modest fluctuations in target price stemming mainly from macroeconomic factors rather than company-specific developments.
What's in the News
- Telefónica is considering a potential takeover of Vodafone's Spanish unit, with a new strategic plan under CEO Marc Murtra that includes this acquisition as a core element, backed by key shareholders and pending regulatory approvals.
- Telefónica reiterated its full-year 2025 guidance, expecting revenue and EBITDA growth in line with targets.
- The board considered and adopted a favorable report from the Nominating, Compensation and Corporate Governance Committee.
- Telefónica is in exclusive talks to sell its Mexican business to Beyond ONE, aiming to reduce exposure in less profitable Latin American markets and refocus on core markets (Brazil, Britain, Germany, Spain); regulatory uncertainty in Mexico could delay the deal.
Valuation Changes
Summary of Valuation Changes for Telefónica
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from €4.35 to €4.41.
- The Net Profit Margin for Telefónica remained effectively unchanged, moving only marginally from 5.60% to 5.65%.
- The Consensus Revenue Growth forecasts for Telefónica remained effectively unchanged, at -2.6% per annum.
Disclaimer
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