Deutsche Telekom: Oddo BHF upgrades stock, raises TP

(CercleFinance.com) - Oddo BHF has upgraded Deutsche Telekom shares from 'neutral' to 'outperform', with a target price raised from E27 to E35.


The analyst points to the lifting of the few fears surrounding the CMD, as well as 'several pieces of good news': the Trump effect in the US, 2027 targets with growth ahead of comparables, probable shareholder return of E34bn, as well as postponed risks (US fiber optics and competition in Germany).

Against this backdrop, we are raising our 2024/2027 estimates, with sales and EBITDAaL up 8%, EPS up 15% and FCF up 15% by 2027.

According to Oddo BHF's calculations, Deutsche Telekom should increase its dividend by 16%/year over 2024-2027 (total ~E20bn).


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