MARKET TALK: Jefferies Initiates UK Telecom Stocks

16th Jul 2010 07:13

0613 GMT [Dow Jones] Jefferies initiates coverage of BT (BT.A.LN) at buy with a 190p price target; Cable & Wireless Communications (CWC.LN) and Cable & Wireless Worldwide (CW.LN) at hold, with 67p and 98p price targets, respectively; TalkTalk Telecom (TALK.LN) at underperform with 113p price target, and Vodafone (VOD.LN) at buy with 175p price target. Raises Virgin Media (VMED) to buy from hold. Has $25.30 price target. Says in the current environment, telecoms offer secure above-inflation dividend yields. Adds that the last two to three years witnessed coordinated price increases from UK fixed-line operators but TV/fiber will offer BT a crucial opportunity to regain retail share. Also says 'pay TV' is changing rapidly, allowing digital subscriber operators to build credible three-play bundles for the first time. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 16, 2010 02:13 ET (06:13 GMT)