Deutsche Telekom: Analysts argue about price target – who is right?

Deutsche Telekom is in the focus of financial analysts after the US bank JPMorgan raised its price target for the share from 31 to 40 euros. Analyst Akhil Dattani continued to rate the share as “overweight” and emphasized that the valuation has not increased despite the share price doubling in the last four and a half years. He attributes this to considerations about a possible slowdown in growth, which he does not share. Dattani praises the successful implementation of the company’s strategy, which continues to offer promising organic growth prospects, as well as the positive effects of various acquisitions. His optimistic assessment is supported by the upcoming capital market days, which is why he gave the share “Positive Catalyst Watch” status back in June. Deutsche Telekom is also on JPMorgan’s “Analyst Focus List”.

In contrast, the Swiss major bank UBS has downgraded Deutsche Telekom shares from “Buy” to “Neutral”, while the price target remains at 28 euros. Analyst Polo Tang justified this decision with the significant price increase of 30 percent within a year and a doubling of the price in the last four years. Tang sees it as appropriate to take a break after this positive development. Nevertheless, he emphasizes that the T share is still considered a quality stock with defensive properties and solid investor returns.

The different ratings of the two banks reflect the different perspectives on Deutsche Telekom’s future development. While JPMorgan remains optimistic and points to the company’s strengths, UBS takes a more cautious stance and recommends that investors closely monitor the stock’s development. This divergence in the analyses could encourage potential investors to take a closer look at Deutsche Telekom’s fundamentals and market position in order to make informed decisions.

Overall, Deutsche Telekom remains an interesting investment that offers both opportunities and risks, and the current analysts’ ratings could be crucial for future share price developments.

At the time of publication of the news, Deutsche Telekom shares are valued at 0.00 % and a price of 26.42EUR traded on Lang & Schwarz (September 12, 2024, 07:41 a.m.).

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