---
title: "This Spanish stock gets price target boost from Barclays on Brazil tailwinds"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286334846.md"
description: "Barclays has raised its price target for Telefónica SA from €3.8 to €4.0, citing favorable foreign exchange movements and stronger expectations for Brazil operations. The brokerage updated its model to reflect the appreciation of the Brazilian real against the euro and removed Mexico from forecasts after Telefónica's $450 million business sale. While revenue estimates for 2026 and 2027 were lowered by about 3%, EBITDA forecasts remained stable. Barclays maintains an Equal Weight rating, noting Brazil as a key growth driver but warns of elevated leverage and intense competition in Spain."
datetime: "2026-05-13T22:31:02.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286334846.md)
  - [en](https://longbridge.com/en/news/286334846.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286334846.md)
---

# This Spanish stock gets price target boost from Barclays on Brazil tailwinds

Investing.com - Barclays updated its model to reflect the appreciation of the Brazilian real against the euro and removed Mexico from forecasts after Telefónica agreed to sell the business for $450 million.The brokerage said revenue estimates for 2026 and 2027 were lowered by roughly 3% due to the disposal, though EBITDA forecasts remained broadly unchanged as improved expectations for Brazil offset Mexico’s limited contribution.Telefonica SA remained rated Equal Weight by Barclays, which raised its price target on the telecom group to €4.0 from €3.8 ahead of first-quarter 2026 results, citing favorable foreign exchange movements and stronger expectations for Brazil operations.The bank now forecasts adjusted EBITDA of €11.9 billion in 2026 and net income of €2.3 billion, with leverage expected to decline gradually toward Telefónica’s 2028 target. Barclays maintained that improving trends in Spain and lower capital intensity are positive, but warned competition remains intense in Spain while Germany continues to face pressure.Barclays said Brazil remains a key growth driver, with the region benefiting from currency tailwinds and stronger operating performance. However, it cautioned that Telefónica’s leverage remains elevated and returns on capital are still below the cost of capital, limiting the case for a more bullish stance on the shares.

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