Zacks Investment Research upgraded shares of Telefonica Brasil, S.A. (VIV) from UNDERPERFORM to NEUTRAL on December 27, 2013, with a target price of $20.00.
We are upgrading our recommendation on Telefonica Brasil to Neutral. The company's bundled offering is improving its competitive position and thus expanding its market share. It is also focusing on higher growth areas like data transmission and video services, which are expected to deliver decent growth in the future. Although the company registered revenue growth in its mobile business segment in the third quarter, the fixed line segment suffered due to poor performance by Pay-TV business and reduction in fixed voice and access business. Further, inflationary cost conditions, competitive pressure, increased wireless penetration and loss of customers will continue to weigh on the stock.
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