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Bullish Case: Telefonica shows recent positive earnings surprises and anticipated growth. E-Plus acquisition could create market-leading operator, rejuvenating competitive position, supported by spectrum divestment strategy.


Bearish Case: EU merger scrutiny, German competition concerns, and market volatility indicate regulatory and operational risks. Past restructuring struggles suggest long-term transformation challenges.


Potential Outcomes:

1) Merger approval creates synergies: 40%;

2) Merger delayed/denied: 35%;

3) Restructured operations yield profit: 15%;

4) Market share loss continues: 10%.


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April 09, 2024


Telefonica Forecast

TEF        Telefonica
Price Forecast: NEUTRAL    Price Action: MEAN REVERTING (?)











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