Telefónica technical analysis: advances 26% in 2021 and seeks 4 euros
Analysts have not greeted Telefonica’s results with great fanfare and joy, despite being literally good. Record profits, greater debt reduction, one of its great handicaps, without a doubt, while it has revised upwards the objectives for this year in terms of income and oibda. In a movement that has also counted on the consolidation after the macro-operation of the sale of Telxius towers to American Tower and the creation of the company in the United Kingdom between 02 and Virgin Media.
But for now They haven’t been in a rush to improve their value recommendations all at once. In fact, Citigroup, trim slightly its target price up to 3.70 euros per share from the previous 3.75, although its price already exceeded those levels. If there is improvement, up to 4.4 euros per Bankinter share, that also changes its advice from sale to purchase of the security. But they are still a long way from the 6.40 euros per share prior to the accounts in its PO that Deutsche Bank reflected, a couple of days before.
Sabadell draws attention to the intricacy of the accounts, Despite the good figures and, they do advise buying while waiting for, with the improvement of the annual forecasts by the company, to advance in the market in the second part of the year. In general, yes, market experts draw attention to the numbers for Spain, which are in what is least visible for the rest of the year.
In its stock chart we see how the value returns to seek the level of 4 euros per share lost on June 17 as the first important resistance for the value, which, in turn, would bring it closer to maximums with falls of just 1.1% in the last 20 sessions, so far this year the value has risen 26.28%
Telefónica price quote
Returning to Bankinter that gives the value a potential in the market of 13.3%, highlights the return to growth in revenues and OIBDA. Also the significant drop in debt that removes the risk of a downgrading of the group’s rating and makes the dividend sustainable.
A matter that puts on the table the permanent nature, already revised downwards from the dividend to be maintained. Recall that, after the June payment, which closed the payment on account of 2020, the door opens to that of 2021: 0.30 euros per total share, with a first payment in December of this year of 0.15 euros per title to culminate in June 2022 with another 0.15 more. It is undoubtedly one of its great strengths. A dividend yield that now reaches 7.75%.
“The Telefónica price – EI technical analyst José Antonio González tells us – registers a volatile session while struggling to overcome the area of technical relevance, previous support now turned into resistance at 3.8465 euros per share, and whose overcoming would enable him to think about attacking the current annual maximums of 4.1485 euros per share ”.
The technical expert on Investment Strategies also points out that “said scenario will not be annulled as long as the price does not pierce the last low provided by the Telefónica price, projected from the 3.5945 euros per share”.
Telefónica on daily chart with Trading Activity (window with blue background), Stochastic oscillator (window with green background) and Medium amplitude range (window with yellow background)
Telefónica technical analysis
The technical indicators of Investment Strategies show us that Telefónica barely marks 4.5 points out of 10 total points for value. Among the favorable, the long-term upward trend for the telecommunications operator stands out, the slow moment that is positive and the volatility in the medium term that is decreasing.
On the other side, the downtrend in the medium term stands out, the total slow negative moment, the decreasing volume of business for the value both in the medium and long term, and the volatility measured in terms of the range of amplitude, moves increasing in the long term.
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