Deutsche Telekom: UBS confirms optimistic stance
(CercleFinance.com) - This morning UBS confirms its buy rating on the share of German telecom operator, Deutsche Telekom.
Sticking to its target price of 18.8 euros, this suggests upside potential of over 20%.
UBS analysts met the "two" group CFOs, Thomas Dannenfeldt, who is currently in office - but who is about to leave - and Christian Ille, who will replace him. Deutsche Telekom first underlined that it has, “invested significantly in the business over the past five years resulting in growth across all parts of the group.”
The group has also been confident of its ability to generate savings of 1.5 billion euros per year, especially once the migration of fixed telephony to the IP network is completed in Germany - either in 2019 or in 2020. This reinforces the group's forecasts for growth in EBITDA and free cash flow.
Deutsche Telekom is also confident regarding the approval of the merger of its US subsidiary T-Mobile US with Sprint, as well as the benefits that the new operator will derive from this. Note that evem on its own, T-Mobile US has growth drivers.
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.
Sticking to its target price of 18.8 euros, this suggests upside potential of over 20%.
UBS analysts met the "two" group CFOs, Thomas Dannenfeldt, who is currently in office - but who is about to leave - and Christian Ille, who will replace him. Deutsche Telekom first underlined that it has, “invested significantly in the business over the past five years resulting in growth across all parts of the group.”
The group has also been confident of its ability to generate savings of 1.5 billion euros per year, especially once the migration of fixed telephony to the IP network is completed in Germany - either in 2019 or in 2020. This reinforces the group's forecasts for growth in EBITDA and free cash flow.
Deutsche Telekom is also confident regarding the approval of the merger of its US subsidiary T-Mobile US with Sprint, as well as the benefits that the new operator will derive from this. Note that evem on its own, T-Mobile US has growth drivers.
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.