Monday, July 4

Telefónica: new price hike, football and more adherence to the cash dividend

Telefonica is available, once again, to raise the price of your Fusion packages delving into the dynamics of giving away mobile phones, again. Three euros is what will raise prices again from January with a 5G smartphone as a gift, with the return to that dynamic that seemed to have disappeared from the Spanish telecommunications scene.

The fierce and increasingly elevated price war for low cost offers is at the base of everything and especially after the company chaired by José María Álvarez Pallete has taken back the rights to football. Together with DAZN, they beat Relevent and Mediapro’s bid for 4.95 billion euros for the 2022-2023 season.

For each campaign Telefónica will pay 520 million euros and it will be done with 55% of the matches: five each day and 3 full days. DAZN will keep five games each day. And you will be able to choose the matches in the first term in 18 days and in the second in the remaining 17, even in the classic of the second round, as indicated by the Confidential. But both platforms will negotiate so that 100% of La Liga can be seen on Movistar +.

In its quotation graph we see that the value moves a little below the levels prior to the arrival of the omicron variant, although the truth is that its path in the last twenty trading sessions is barely cut by one and a half percentage points. So far this year it maintains significant progress, which is close to 29% for Telefónica.

Telefónica annual share price

What’s more, 65% of Telefónica shareholders have chosen to receive the dividend in shares. It is still a very high percentage that will lead the company to increase its capital by 2.5% with the distribution of 290 million euros. But nevertheless, that percentage is 6% lower than last year, with which more shareholders opt in 2021 to receive this remuneration to the investor in cash. Shares that will be listed from next Thursday.

Among the recommendations on the value, the one of Deutsche Bank, which with its purchase bet on Telefónica and its target price of 6.4 euros per share, offers a potential for the company of no less than 66%. To a lesser extent, the target price it sets is imposed on the Bank of America company. We are talking about 5.2 euros per share, yes, also with purchase advice on the value.

Less favorable are both Jefferies and JP Morgan with respect to Telefónica. In the case of the New York firm, among European stocks, the operator is the one chosen in the negative of the Ibex for 2022, while it considers underweight its weight. In the case of the second New Yorker, JPMorgan, its target price is already exceeded by its listing on the Ibex, with a rating of worse than the market and a PO of 3.7 euros per share.

At Telefónica “the price turns down from the resistance area that is projected starting at 4.162 / 4.1015 euros per share, turn that puts in check the viability of its medium and long-term moving averages, the perforation of which would enable attacking the area of ​​3.4615 / 3.3415 euros per share, secondary or medium-term support zone ”, as indicated José Antonio González, who is a technical analyst for Investment Strategies.

Telefónica on daily chart with average amplitude range in percentage, MACD oscillator and trading volume

Telefónica technical analysis of the value

Low score for the telecommunications operator and a significant drop of 3 points, with a bearish mode, within the premium indicators prepared by Investment Strategies and that place Telefónica with barely 2 points out of 10 possible for the value. As favorable, we find the fast total moment, which is positive and the medium-term volume, which is growing.

The rest, a downward trend in both aspects, that is to say in the medium and also in the long term, the total slow moment that is negative for the value, the volume of business that is decreasing in the long term and the volatility of Telefónica, both in the medium and long term that is increasing.

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Reference-www.estrategiasdeinversion.com

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