Telefónica remains on track to deliver its 2020 outlook of flat EBITDA-capex yoy in organic terms but… at constant currency. The Forex headwind is however a storm in Brazil (-30% yoy).
The stock is trading at a 55% discount to its February level. The dividend yield is nearly 15% reflecting the market’s major concern about its sustainability.
Even if the group ends up lowering its dividend due to this Forex storm… we maintain our Buy opinion.
29 Oct 2020
Will the descent into hell ever stop?
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Will the descent into hell ever stop?
Telefónica remains on track to deliver its 2020 outlook of flat EBITDA-capex yoy in organic terms but… at constant currency. The Forex headwind is however a storm in Brazil (-30% yoy).
The stock is trading at a 55% discount to its February level. The dividend yield is nearly 15% reflecting the market’s major concern about its sustainability.
Even if the group ends up lowering its dividend due to this Forex storm… we maintain our Buy opinion.