Deutsche Telekom: Credit Suisse no longer a buyer

(CercleFinance.com) - The Deutsche Telekom share is down nearly 5% at lunchtime today in Frankfurt.
The influential broker Credit Suisse this morning downgraded its buy rating ("outperform") on the share, adopting a neutral stance. It has a target price of 17 euros for the share in its central scenario, while it has cut its most optimistic forecast from 23 euros to 20 euros.

In its research note, Credit Suisse says that the share's return/risk ratio is now less attractive. The broker has also slashed its earnings estimates for the German telecom operator, which are now in line with those of the consensus.

At issue: the group's presence in the US (T-Mobile US), but also its domestic market, where the skyline is clouding up, with a potentially more competition in both mobile and fixed telephony.


Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.