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Telefonica: New Perp FV Analysis

COMMUNICATIONS
  • EUR Benchmark PerpNC8.1 Green IPT 6.25%a.
  • 6.25% is ~MS+363 currently.
  • Using the existing TELEFO hybrid curve, we see FV around MS+325a i.e. 5.875%a.
  • We like TELEFO credit ,despite high leverage, with guidance for earnings uplift this year; we see lower capex needs vs peers due to their advanced fibre rollout.

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