Analyst Sachin Mittal of DBS maintained a Buy rating on Deutsche Telekom (0MPH – Research Report), with a price target of €38.00.
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Sachin Mittal has given his Buy rating due to a combination of factors that highlight Deutsche Telekom’s strong market position and growth potential. Deutsche Telekom is Europe’s largest telecommunications provider by revenue, with a significant contribution from its T-Mobile US subsidiary. The company’s extensive 5G network coverage in Germany and strategic initiatives in AI and network expansion are expected to drive future growth.
T-Mobile US remains a key growth driver, with substantial customer additions and improved ARPU, contributing to Deutsche Telekom’s robust earnings performance. The company’s earnings are projected to grow at a CAGR of 9% over FY24-26F, supported by strong operational performance across key markets. Additionally, the acquisition of fiber optic providers in the US is anticipated to bolster growth further. The target price of EUR38 suggests a 23% upside potential, reflecting a premium valuation based on expected earnings growth compared to peers.
In another report released yesterday, UBS also maintained a Buy rating on the stock with a €36.20 price target.
Based on the recent corporate insider activity of 25 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of 0MPH in relation to earlier this year.