UBS lowers OTE rating to ‘Reduce 1’

Investment bank UBS said yesterday it was maintaining a «Reduce 1» rating for telecoms operator OTE, adding that with the exception of its Bulgarian and Romanian subsidiaries, third-quarter results provided few hopes for a turnaround. UBS said it had maintained a price target of 9.0 euros per share, noting decelerating traffic and scarce cost-cutting initiatives in OTE’s fixed-line business. «We remain concerned with the performance of fixed-line operations, both at the top line and on the cost front,» UBS said. The group on Wednesday reported a smaller-than-expected 18.9 percent drop in third-quarter net profit. (Reuters)