Deutsche Telekom: outperforming the DAX, an analyst's opinion

(CercleFinance.com) - Deutsche Telekom gained nearly 1% in Frankfurt, outperforming the DAX (-0.
7%), after Oddo BHF raised its recommendation on the stock from 'neutral' to 'outperform', with a price target raised from 27 to 35 euros.

The analyst points to the lifting of the few fears surrounding CMD (investors' day), as well as "several pieces of good news": the Trump effect in the US, 2027 targets with growth ahead of comparables, a probable shareholder return of E34 bn, 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 of ~E20 bn).

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