HLTOF - Barclays cuts Vodafone Hellenic Telecom on limited pricing power

Looking at foreign telecoms in a tough macroeconomic backdrop, Barclays is cutting its ratings on a pair that it says has limited pricing power. Analyst Maurice Patrick has cut Vodafone (NASDAQ:VOD) and Hellenic Telecom (OTCPK:HLTOY) to Equal Weight, from a previous Overweight rating. That's due to limited ability to pass along cost increases in Italy, Greece, and Spain, he said, thanks largely to high competition, macro uncertainties or a combination of those factors. Inflation will land harder on Vodafone (VOD) than most telecoms, he said, with only the UK likely to see material price increases over the next couple of years among Vodafone's four biggest European markets. As for Hellenic Telecom (OTCPK:HLTOY), Greece is more likely than others to see impact from an economic slowdown. Turning to France among Europe markets, Patrick and team said that four market players is an unstable equilibrium that has "proved rational"; they've upgraded Orange

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Barclays cuts Vodafone, Hellenic Telecom on limited pricing power