Deutsche Telekom: Great prospects despite new share price dampeners!

Deutsche Telekom: Great prospects despite new share price dampeners!

Deutsche Telekom shares have fluctuated around the 31 euro mark in recent weeks. This is particularly relevant since UBS has lowered the price target for the company. From the previous 36.20 euros, the target has now been reduced to 35.40 euros, although the “Buy” classification still exists the shareholder reported. KeyBanc Capital Markets' downgrade to Underweight has also put additional pressure on the share price.

Deutsche Telekom's quarterly figures are expected on August 7th, which could possibly be mixed. However, analyst Polo Tang is optimistic that T-Mobile US, the subsidiary of Deutsche Telekom, will report positive numbers. These will be published on July 23rd and could provide crucial information about general company development.

The role of T-Mobile US

T-Mobile US is showing strong performance, which contributes significantly to the stability of Deutsche Telekom. The company's sales and EBITDA increase compared to the previous year, which Finanzmarkt.info confirmed. Particular growth drivers are the strong customer growth, the low churn rate and the successful integration of the Sprint business. New customer growth is being promoted primarily by the expansion of the 5G network and attractive mobile phone offers.

T-Mobile US is also asserting itself as the market leader in the 5G sector and is expanding in both urban and rural regions. This market position offers the greatest growth potential for Deutsche Telekom and is central to Group sales. Analysts are optimistic about future price increases for Deutsche Telekom, driven by positive developments in the USA.

Forecasts and market development

Despite the current challenges, the development of Deutsche Telekom shares remains stable. Telekom's 51.8 percent stake in T-Mobile US is worth around 115 billion euros and covers around three quarters of the company's total market capitalization. This leads analysts to believe that a new multi-year high is expected during the second half of the year, presenting an attractive opportunity for investors.

In summary, the outlook for Deutsche Telekom is positive due to the strong market position of its subsidiary T-Mobile US and the ongoing 5G expansion. Increases in efficiency and synergies from the Sprint integration could also lead to higher margins and further increase the attractiveness of the stock.