Benzinga | Oct 15, 2021 08:24AM EDT

Why Are Telefonica Shares Trading Lower Today?

* Barclays analyst Mathieu Robilliard downgraded Telefonica SA (NYSE:TEF) to Underweight from Equal Weight with a price target of (euro)3.40 ($3.94), down from (euro)4, implying a 13.7% downside.

* The analyst views the recent re-rating of the shares as overdone, saying Telefonica's operating free cash flow in Spain will remain under pressure with competition still high.

* Further, it is unlikely that the company's expensive football rights will get renewed at a lower price, Robilliard notes.

* Related Content: Telefonica Weighs Stake Sale In Spanish Fiber Network: Bloomberg

* Price Action: TEF shares traded lower by 3.72% at $4.40 in the premarket session on the last check Friday.