Unfortunately for its shareholders the TPG Telecom Ltd (ASX: TPM) share price has given back yesterday's post-results gains and more in morning trade.
At the time of writing the telco company's shares are down over 6% to $5.14.
Why are its shares lower today?
Today's decline is likely to be related to a number of broker reports that were released this morning following its full-year results announcement yesterday.
According to a note out Deutsche Bank, its analysts have downgraded TPG Telecom to a hold rating and slashed the price target on its shares from $8.20 to $5.80.
While Deutsche sees promise in its mobile plans, the broker expects two years of earnings declines and a lower dividend.
Elsewhere, a note out of Credit Suisse reveals that it has retained its underperform rating and reduced its price target to $5.00.
And finally, Morgans is the most bearish of them all. The leading broker has retained its reduce rating and cut its target down to just $4.30.
Should TPG Telecom's shares fall to this level it would mean a further decline of 16% from the current share price.
Should you buy the dip?
While I would be surprised to see its shares fall as low as $4.30, I can't really see a catalyst to take them meaningfully higher from here in the near future.
Especially given the negative sentiment surrounding it and industry peers Telstra Corporation Ltd (ASX: TLS) and Vocus Group Ltd (ASX: VOC).
I would class TPG Telecom as a hold at this point and expect it to trade sideways until its return to growth in FY 2019 or FY 2020.
