2024-07-11 14:33:18 ET
Summary
- The company operates in a capital-intensive and competitive telecommunications sector in Brazil, facing challenges in agility and regulatory requirements.
- Telefonica Brasil faces regulatory complexities and financial indicators worse than its competitor TIM, making its valuation stretched.
- Despite decent growth and profitability, a comparative valuation suggests a 7.4% downside in Telefônica Brasil's current prices, leading to a recommendation to sell shares.
Investment Thesis
I recommend selling Telefonica Brasil S.A. ( VIV ) shares. The company operates in the telecommunications sector, a capital-intensive sector marked by competition. But there is an additional risk: players operating in Brazil need to deal with several regulatory requirements, which makes the operation even more complex....
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Telefonica Brasil: Sectoral Complexities And Unattractive Valuation