Deutsche Telekom Finds Support from Rare Five-Star Rating and T-Mobile US Momentum
Published on 07/08/2026 at 12:33 | Redaktion boerse-global.de
The stock of Deutsche Telekom has staged a modest recovery over the past week, rising more than six percent from its recent 52-week low to trade around €25.80. The bounce comes as a flurry of analyst reports and operational milestones provide counterweight to persistent competitive pressures, particularly in the US market.
Morningstar raised its rating on the US-listed shares to the maximum five stars, arguing that the stock has fallen too far. The research house sees a fair value of $44, leaving the current price at roughly €25.52 — a discount of around 40 percent when converted. The analysts maintain their view that the company enjoys a narrow economic moat, and they frame the gap as an opportunity for conservative investors, though they stress that a five-star rating is not a buy recommendation.
A key source of optimism flows from T-Mobile US, the American subsidiary. Bank of America upgraded the unit to “Buy” with a $220 price target, praising its strong urban footprint where satellite competitors like Starlink face capacity constraints. Meanwhile, T-Mobile US is pressing ahead with network modernisation: the company will shut down its legacy 2G network in early August 2026, freeing up spectrum to boost 5G services and profitability.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
On the home front, Deutsche Telekom recaptured the top spot in the latest German fixed-line test from Imtest, displacing rival 1&1. Management attributes the win to years of heavy infrastructure spending, with fibre-optic rollout at the core of its strategy. The company’s own share buyback programme — the third tranche, covering purchases of up to €560 million — has also helped steady the stock.
Not all analyst voices are uniformly bullish. Barclays trimmed its price target from €39.50 to €36.50 in early July, citing tougher US competition and risks from satellite broadband players. Yet it maintained its “Overweight” rating, implying roughly 45 percent upside from current levels. The bank sees the market as too pessimistic on the stock’s prospects.
Technical indicators paint a mixed picture. The relative strength index stands at about 41–43, suggesting neither overbought nor oversold conditions. The 30-day annualised volatility of 29.5 percent points to elevated swings. Both the 50-day moving average of €27.45 and the 200-day average of €28.72 remain well above the current price, underscoring the recent slide.
Investors will get the next hard test of the thesis on 6 August, when Deutsche Telekom reports second-quarter earnings. The results will show whether operational momentum in Germany and the US can justify the valuation gap that Morningstar and others believe exists. For now, the stock sits 8.4 percent above its June low of €23.54 but still 25.7 percent below the 52-week peak of €34.35 reached in late February.
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