'What else could go wrong?' Kepler Cheuvreux says and ups Telefonica to 'hold'

Kepler Cheuvreux upgrades Telefonica to 'hold' from 'reduce' after a 20% share price fall, citing limited downside risk. Despite the upgrade, Kepler notes Telefonica's growth is below peers, with no FCF momentum and leverage issues. The new business plan is a negative surprise, but targets are more realistic. Telefonica's FCF outlook is below expectations, raising concerns about sustainability. Out of 26 analysts, three rate it 'strong buy'/buy, 15 'hold', and eight 'strong sell'/sell.