Deutsche Telekom AG

JPMorgan analyst Akhil Dattani reaffirmed an Overweight rating with a €40 price target, citing sustained double-digit EPS growth ahead and arguing the stock trades at a historic discount to intrinsic value. UBS also issued a Buy rating with a €36.20 target, expecting a strong Q2 2026 from T-Mobile US.

Analysts caution that T-Mobile US faces serious headwinds, including competitive pressure from SpaceX's satellite internet ambitions and merger speculation. JPMorgan itself acknowledged that a sustained improvement in news flow could take several quarters, while the stock has shed roughly 30% from its March 2025 peak.

Erste Group Bank raised its FY2027 EPS estimate to $2.88 from $2.80, well above the consensus of $2.55. Deutsche Telekom's own FY2026 guidance targets EPS of around €2.20, up from €2.00 in 2025, with adjusted EBITDA guided at €47.4 billion and free cash flow at €19.8 billion.

Despite upward EPS revisions, Erste Group Bank maintained only a Hold rating, and Deutsche Telekom missed quarterly EPS consensus estimates by $0.45. DTE's forecast earnings growth of 10.1% per year lags the broader German market at 17%, and revenue growth of 2.7% trails the market's 6.7%.

Fitch upgraded Deutsche Telekom's Long-Term Issuer Default Rating to 'A-' from 'BBB+' with a stable outlook, reflecting improved financial strength. A €2 billion share repurchase programme has provided intermittent support to the stock, and analysts at Simply Wall St forecast return on equity reaching 17.9% in three years.

Despite the credit upgrade and buyback programme, the stock remains down 12.32% over the past 12 months and trades 8.28% below its 200-day moving average. Barclays cut its price target by €1.50 and Morgan Stanley reduced its target from €40 to €38, signalling concern over execution and growth headwinds.