Deutsche Telekom: still a best pick for UBS
(CercleFinance.com) - UBS this morning confirms its buy rating on the Deutsche Telekom share, as well as its 12-month target price of 18.
4 euros, which represents upside potential of over 25%.
Admittedly, the Deutsche Telekom share has changed very little since the start of 2018, although it has outperformed the Stoxx Europe 600 Telecommunications index since May - and this may not be over yet.
Indeed, UBS says that the group's investor day reassured regarding the group's investments in Germany. In addition, analysts say that, “we think the DT share price does not reflect the fact that Germany is one of few growth markets in European Telecoms and does not reflect the re-rating of TMUS (its US subsidiary which is set to merge with Sprint, ed.), currently c40% of DT EBITDA.”
Indeed, according to UBS, its investor day reassured regarding the group's investments in Germany. In addition, analysts say, "we believe that the current price does not take into account that Germany is one of the few growing telecom markets in Europe, nor the re-appreciation of T-Mobile US (the US subsidiary that will merge with Sprint, ed), which concentrates about 40% of the group's EBITDA to date".
And all the more so since T-Mobile US reported quarterly results that are deemed "reassuring," and that Deutsche Telekom should do the same on 8 November when it will unveil its own results, UBS forecasts. Indeed, Deutsche Telekom is its best pick in the sector in Europe.
Copyright (c) 2018 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.
4 euros, which represents upside potential of over 25%.
Admittedly, the Deutsche Telekom share has changed very little since the start of 2018, although it has outperformed the Stoxx Europe 600 Telecommunications index since May - and this may not be over yet.
Indeed, UBS says that the group's investor day reassured regarding the group's investments in Germany. In addition, analysts say that, “we think the DT share price does not reflect the fact that Germany is one of few growth markets in European Telecoms and does not reflect the re-rating of TMUS (its US subsidiary which is set to merge with Sprint, ed.), currently c40% of DT EBITDA.”
Indeed, according to UBS, its investor day reassured regarding the group's investments in Germany. In addition, analysts say, "we believe that the current price does not take into account that Germany is one of the few growing telecom markets in Europe, nor the re-appreciation of T-Mobile US (the US subsidiary that will merge with Sprint, ed), which concentrates about 40% of the group's EBITDA to date".
And all the more so since T-Mobile US reported quarterly results that are deemed "reassuring," and that Deutsche Telekom should do the same on 8 November when it will unveil its own results, UBS forecasts. Indeed, Deutsche Telekom is its best pick in the sector in Europe.
Copyright (c) 2018 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.