Gains May Be On The Menu For Telefonica Brasil S.A. (NYSE: VIV)


Causeway Capital Management LLC recently announced the acquisition of new stake in Telefonica Brasil S.A. (NYSE:VIV). The institutional investor has increased its shareholding in the Communication Services company by 0.34% to 3.18 million shares with purchase of 10900.0 shares. This fresh investment now brings its stake to 0.28% valued currently at $28.2 million. In addition, Moerus Capital Management LLC raised its holdings by 0.94 million to 3.03 million shares. And SSgA Funds Management, Inc. has lifted its position by 39.65% or 0.86 million shares – to 3.02 million shares.

With over 2.48 million Telefonica Brasil S.A. (VIV) shares trading Tuesday and a closing price of $9.78 on the day, the dollar volume was approximately $24.23 million. The shares have shown a negative weekly performance of -3.26% and its price on 07/28/20 gained nearly 1.87%. Currently, there are 1.69B common shares owned by the public and among those 446.72M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 14 analysts who have offered their price forecasts for VIV have a consensus price objective of $11.88. The analysts have set the share’s price value over the next 12 months at a high of $15.00 and a low of $10.10 should the stock experience a downside. Incidentally, analysts’ outlook for the Telefonica Brasil S.A. stock is 2.10 for the next 12 months. The average price target is 24.07% above its last price level and an upside to the estimated low will see the stock gain 3.17% over that period. But an upside of 34.8% will see the stock hit the forecast high price target while mean target price for the stock is $11.48.

The top 3 mutual fund holders in Telefonica Brasil S.A. are Artisan International Value Fund, St. James’s Place Unit Trust – Gl, and Artisan Global Value Fund. Artisan International Value Fund owns 27.95 million shares of the company’s stock, all valued at over $247.63 million. The company bought an additional 0.71 million shares recently to bring their total holdings to about 2.50% of the shares outstanding. St. James’s Place Unit Trust – Gl sold -0.37 million shares to see its total holdings shrink to 8.07 million shares valued at over $71.5 million and representing 0.72% of the shares outstanding. Artisan Global Value Fund sold -0.81 million shares to bring its total holdings to over 5.12 million shares at a value of $45.38 million. Artisan Global Value Fund now owns shares totaling to 0.46% of the shares outstanding.

Shares of Telefonica Brasil S.A. (NYSE: VIV) opened at $9.67, up $0.07 from a prior closing price of $9.60. However, the script later closed the day at $9.78, up 1.87%. The company’s stock has a 5-day price change of -3.26% and 20.79% over the past three months. VIV shares are trading -28.27% year to date (YTD), with the 12-month market performance down to -26.15% lower. It has a 12-month low price of $7.44 and touched a high of $14.03 over the same period. Currently, 2.48 million shares have been traded, compared to an average intraday trading volume of 2.19 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 5.69%, 7.68%, and -11.21% respectively.

Institutional ownership of Telefonica Brasil S.A. (NYSE: VIV) shares accounts for 13.70% of the company’s 1.69B shares outstanding. Mutual fund holders own 6.00%, while other institutional holders and individual stakeholders account for 6.60% and — respectively.

It has a market capitalization of $16.69B and a beta (3y monthly) value of 0.72. The stock’s trailing 12-month PE ratio is 17.88, while the earnings-per-share (ttm) stands at $0.55. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.54% over the week and 2.68% over the month.

Analysts forecast that Telefonica Brasil S.A. (VIV) will achieve an EPS of $0.15 for the current quarter, $0.18 for the next quarter and $0.65 for 2021. The lowest estimate earnings-per-share for the quarter is $0.12 while analysts give the company a high EPS estimate of $0.22. Comparatively, EPS for the current quarter was $0.21 a year ago. Earnings per share for the fiscal year are expected to decrease by -44.00%, and 13.24% over the next financial year. EPS should grow at an annualized rate of -1.30% over the next five years, compared to -7.60% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 14 brokerage firm advisors rate Telefonica Brasil S.A. (VIV) as a “Moderate Buy” at a consensus score of 2.10. Specifically, 9 Wall Street analysts polled rate the stock as a buy, while 4 of the 14 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the VIV, a number of firms have released research notes about the stock. JP Morgan stated their Overweight rating for the stock in a research note on April 22, 2020, with the firm’s price target at. Goldman coverage for the Telefonica Brasil S.A. (VIV) stock in a research note released on April 02, 2020 offered a Buy rating with a price target of. Barclays was of a view on August 01, 2019 that the stock is Equal Weight, while Standpoint Research gave the stock Hold rating on July 25, 2019, issuing a price target of. JP Morgan on their part issued Neutral rating on June 04, 2019.


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