Deutsche Telekom Rolls Out Buyback Near Lows as Morningstar Flags 44-Dollar Fair Value
Published on 07/09/2026 at 04:22 | Redaktion boerse-global.de
The convergence of a rare five-star rating from Morningstar and an active share repurchase programme is giving Deutsche Telekom a tactical lift, yet the stock remains pinned close to its 2026 trough. Morningstar raised its rating on the US-listed shares from four to five stars – its highest mark – arguing that the equity is heavily undervalued at current levels. The upgrade follows a punishing stretch that has erased roughly 20% of the stock’s value over the past three months alone, with the shares changing hands at €25.54 in Frankfurt.
Morningstar’s analysts peg the fair value at $44, implying a substantial discount of more than 40% to their intrinsic estimate. They maintain their narrow economic moat rating for the telecoms giant and see the present weakness as a buying opportunity for conservative investors, though a five-star rating does not constitute an automatic buy recommendation. The call comes on the heels of a price target cut from Barclays, which lowered its target from €39.50 to €36.50 while keeping an “Overweight” stance. Analyst Mathieu Robilliard cited a deteriorating US competitive landscape, growing satellite-internet threats to broadband, and the potential formation of a holding company with T-Mobile US as the main headwinds.
The company itself is deploying capital aggressively to mop up shares during the downturn. Between 1 and 3 July, Deutsche Telekom bought back 908,705 of its own shares for roughly €22.48 million through Xetra electronic trading. The current tranche runs until the end of September and allows for purchases of up to €560 million, or a maximum of 23.5 million shares. The broader programme, which extends through the end of 2026, has a total envelope of €2 billion. Fewer shares in circulation automatically boost earnings per share, a clear objective in a period of suppressed valuations.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
Technically, the picture remains brittle. The stock is trading 25.65% below its 52-week high of €34.35 set on 27 February and only 8.50% above the year’s low of €23.54 reached on 30 June. Both the 50-day moving average of €27.45 and the 200-day average of €28.72 lie above the current price, signalling sustained downward pressure. The relative strength index sits at 41.4, a neutral reading that suggests no immediate oversold bounce is guaranteed. On a weekly basis the shares have clawed back 1.35%, but the monthly decline stands at 8.10% and the year-to-date loss at 8.36%. Over twelve months the drop is 17.88%, with volatility running at an elevated 29.48%.
Against this faintly bearish backdrop, Deutsche Telekom is pressing ahead with network investments. In the German town of Nachrodt-Wiblingwerde, the company is taking over a stalled fibre-optic project that will connect roughly 2,000 households and businesses, with construction expected to start by October. Across the Atlantic, T-Mobile US is scheduled to shut down its 2G network on 3 August, freeing up spectrum for 5G and 6G services. Both moves underscore management’s focus on infrastructure even as the share price struggles.
The next major catalyst is the second-quarter earnings report due on 6 August. By then investors will have a clearer view of whether the operational momentum can close the valuation gap that Morningstar and Barclays both identify. Until those numbers land, the buyback remains the most tangible signal from the boardroom – a bet that the market’s pessimism has overshot the fundamentals.
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