UBS drops telecoms rating to neutral (MarketWatch) (25-02-2011)

LONDON – UBS cut on Friday its rating on the telecoms to neutral from overweight due to long-term structural issues and the fact that the earnings momentum is now negative.

The broker also noted that telecoms saw the biggest net buying by investors over the last month but said high dividends prevent it from going underweight.

UBS' top picks in the sector are Telenor KPN and Telefonica SA

Source: MarketWatch