Investment bank JP Morgan said on June 2 it had downgraded its rating on Portugal Telecom to "underweight" from "neutral" and cut the share price target to 8.7 euros from 9.1 euros. "Portugal Telecom's 3G launch contains a downgrade to mobile guidance that is unrelated.This is an effective profits warning following an alleged slump in Portuguese Gross Domestic Product this year," JP Morgan analysts said in a note.
"We lower revenue estimates materially, also at earnings before interest, tax, depreciation and amortisation in response to Portugal Telecom's 3G plan."
Shares in Portugal Telecom ended at 8.45 euros on Wednesday.