JPMorgan agrava las presiones sobre Telefónica en el Ibex

A chaotic day for the telecommunications company Telefónica on the Ibex exchange unfolded as JPMorgan aggravated pressures on the stock. Post-election results in Brazil triggered two sharp drops in Telefónica's stock price. The worst affected was the Brazilian vote, where left-wing candidate Lula da Silva emerged victorious over the right-wing winner Flávio Bolsonaro.

This shift caused Telefónica's shares to reverse their 3.38% rise from three weeks ago. Manuel Pinto, an investment analyst at XTB, explained that the final count of the second vote forced investors to unwind positions based on an unexpected result. By the end of trading today, Telefónica's stock had plummeted by 8%, reaching as low as 3.10 euros intraday.

Prior to market open, investors also faced another significant bearish pressure from JPMorgan, which issued a dual downgrade on Telefónica. The investment bank shifted its stance to negative, advising against investing in the company. This downgrade came alongside a 13% reduction in its price target. Currently, JPMorgan values Telefónica at 3.70 euros per share, but this adjustment has lowered the price target to 3.20 euros.