The stars have lined up so that Telefónica bounces after losing 6 euros in recent days and set minimums of the last century. Expectations for the sale of assets, rumors of the entry of partners into capital, good recommendations from analysts and a good technical aspect have caused the shares to skyrocket 3.76% to 6,269 euros at the close of the trading session.
Today's increases in Telefónica have not been seen since November 2018. The company's titles had been flirting with the level of 6 euros.
On the one hand, Bank of America has raised the target price of the share to 8.2 euros from the previous 7.9 euros. The broker is positioned less than a month after the presentation of results. Telefónica will present its 2019 accounts on February 20. The firm grants a bullish potential of 30% and highlights that the adjustment plan proposed last October, together with the perspective of assets in Latin America, will entail a significant cost reduction.
The price of the teleco moves today in the market due to the expectations that the roadmap of the exit of Latin America and the rumors of entry into capital of the CVC fund will begin to be substantiated, as published today The confidential. Banco Sabadell analysts remember that the news is not new to the market and the entry of new shareholders at current levels cannot be ruled out. For these experts it would be positive to support the actions.
From the technical point of view, the actions have reacted before touching their support at 5.98 euros. “As long as they are not lost, the Spanish operator is looking for their upward restructuring with a target of 6.45 euros in the first place,” the technical analysts of Ecotrader.