The German telecommunication giant’s share prices are supported by good performance in the second quarter and optimistic forecast from the executive managers for the current year, according to Freedom Finance analytics. Currently, the share price is €18.6, the target price is €21, and the dividend yield of 6.3%. So, why do you have to consider purchasing Deutsche Telekom stocks?
Strong performance in the second quarter of 2021. On August 11, Deutsche Telekom published a report for its performance in the period from April to June with an adjusted rate of revenue of 6.8% (compared to the previous year) even though the weakening of the U.S. dollar brought this rate down by 1.7%. However, adjusted EBITDA rose by 1.1.% to €9.4 billion. T-Mobile, a U.S. subsidiary of the German giant also showed good results. The company increased its customer base by 627,000 new clients and got net revenue of €2.1 billion (+65.3% compared to the previous year).
Promising forecasts for the current year and the upcoming deal with a Netherland subsidiary sale. This is the second time that executive managers of the company have improved their financial forecast for this year. For example, EBITDA is expected to be higher by €200 million compared to the previous year. In addition, during the conference call with investors, the company’s executives confirmed that the negotiations on the T-mobile Netherlands sale have continued. According to Bloomberg, Reliance from India might be the one who is ready to pay €5 billion for this asset.
The latest data from investment houses. The target price based on analytical data is €21.9. Twenty-five analytics out of twenty-eight recommend to «buy,» while the other three experts say investors better «keep» a stock. The highest target has been set by J.P. Morgan and is equal to €29. The target price according to Barclays, Morgan Stanley, and DZ Bank is €22.5 and above.