---
title: "Andrew Lee Reiterates Buy Rating on Improved Core-Market Momentum, Stronger Spain Performance, and Solid Cash Flow Supporting 2026 Guidance"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286601332.md"
description: "Analyst Andrew Lee of Goldman Sachs maintains a Buy rating on Telefonica with a price target of €4.50, citing improved core-market momentum and strong performance in Spain. The company shows solid revenue and EBITDA growth, particularly in Spain, and a positive outlook for Brazil and Germany. Free cash flow exceeded expectations, supporting 2026 guidance and potential upward revisions to EBITDA estimates."
datetime: "2026-05-15T18:25:20.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286601332.md)
  - [en](https://longbridge.com/en/news/286601332.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286601332.md)
---

# Andrew Lee Reiterates Buy Rating on Improved Core-Market Momentum, Stronger Spain Performance, and Solid Cash Flow Supporting 2026 Guidance

Analyst Andrew Lee of Goldman Sachs maintained a Buy rating on Telefonica, with a price target of €4.50.

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Andrew Lee has given his Buy rating due to a combination of factors including a better‑than‑expected first quarter and visible momentum in core markets. He highlights that Spain, historically a challenging segment, is now showing its strongest revenue and EBITDA growth in years, supported by successful convergence, cross‑selling, and upselling in a more rational competitive landscape, which underpins a more durable growth profile.

He also points to structurally solid performance in Brazil and an expected improvement in Germany as revenue pressure from a lost wholesale contract abates. The free cash flow beat, aided by capex phasing, together with reiterated guidance for 2026 and beyond, reinforces confidence in the company’s ability to deliver on its targets and leaves room for potential upward revisions to EBITDA estimates, even if some investors may wait for clearer capital allocation signals before fully re‑rating the stock.

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