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Telecomunicacoes de Sao Paulo S.A. - Telesp (TSP)
Telecomunicacoes de Sao Paulo S.A. - Telesp (TSP) News

TSP Telecomunicacoes de Sao Paulo S.A. - Telesp

29.70

0.00 (0.00%)

After Hours

Last Updated: 01:00:00

Delayed by 15 minutes

Share Name	Share Symbol	Market	Type
Telecomunicacoes de Sao Paulo S.A. - Telesp	NYSE:TSP	NYSE	Ordinary Share

	Price Change	% Change	Share Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	0.00	0.00%	29.70				0.00	01:00:00

Telesp S.A. - ADS (VIV) - Bear of the Day

20/09/2011 1:00am

Zacks

We are downgrading our recommendation to Underperform from Outperform on Telesp S.A. (VIV). Although the Vivo merger boosted Telesp's existing operations, competition in fixed-line and mobile businesses weigh on its results. We are skeptical about the company's ability to regain lost profitability of the fixed-line business.

Tariff cuts or changes in government regulations would also create added pressure. All these factors might restrict potential synergies derived from the merger and restrain top and bottom-line growth. Hence, we expect the company to underperform the market.

Telesp is expected to suffer intense inflationary pressure, competition and excessive government intervention. We give an Underperform rating to the stock, with a price target of $27, based on 10.7x our 2011 EPADS estimate.

Zacks Investment Research