Deutsche Telekom: DZ Bank Trims Price Target but Sees 27% Upside as Buyback Campaign Accelerates
Published on 07/29/2026 at 21:11 | Redaktion boerse-global.de
The DZ Bank has trimmed its price target on Deutsche Telekom from €37 to €35, but the investment case remains firmly intact, with analysts reiterating their “Buy” recommendation and pointing to a roughly 27 percent upside from current levels. The revision comes as the Bonn-based telecom giant prepares to release its full half-year financial report on August 6, 2026, a moment investors are watching closely for confirmation that cash flows from the US operations are feeding into the European fiber rollout.
At €27.54, the stock has lost nearly 13 percent over the past twelve months, a decline that the DZ Bank views as overdone. The analysts base their conviction primarily on the cash-flow strength of T-Mobile US, the American subsidiary that recently delivered a mixed quarterly scorecard. While revenue growth fell slightly short of expectations, management raised its full-year 2026 free cash flow forecast to a range of $18.4 billion to $18.8 billion — a figure the DZ Bank interprets as evidence of underlying fundamental health across the broader group.
Buyback Blitz Sends a Signal
Deutsche Telekom is reinforcing that message with its own capital allocation decisions. The company continues to repurchase its own shares at a brisk pace, acquiring approximately 1.35 million shares between July 20 and July 24, according to a mandatory disclosure. Since the start of the current tranche on July 1, the total buyback volume has already surpassed 5 million shares. The full-year 2026 program, which authorizes up to €2 billion in repurchases, is designed to reduce the outstanding share count and boost earnings per share.
Market participants interpret the steady buying as a clear vote of confidence from management, which appears to view the stock as undervalued at current levels. That assessment aligns with the DZ Bank’s own view, which highlights the stock’s attractive valuation relative to peers despite the reduced price target.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
Fiber Footprint Provides a Counterweight
On the operational front, Deutsche Telekom’s domestic business offers a stabilizing anchor. By the end of the second quarter, the company’s pure fiber-to-the-home (FTTH) connections had reached approximately 13.6 million households and businesses. The fiber network now spans more than 890,000 kilometers of cable, an infrastructure buildout that analysts see as a long-term competitive moat in the high-speed internet market.
This fixed-line expansion provides a buffer against the more volatile dynamics of the US mobile market, where T-Mobile US faces shifting competitive pressures. The interplay between American cash flow generation and European capital spending remains the central question for investors heading into the August 6 earnings release.
Technical Picture Holds Neutral
The stock currently trades at €27.41, roughly 1.2 percent above its 50-day moving average of €27.09. The relative strength index stands at 56.6, indicating neutral-to-slightly-positive momentum with no signs of overbought conditions. The chart suggests the stock is in a holding pattern, awaiting the catalyst that the half-year report could provide.
Deutsche Telekom at a turning point? This analysis reveals what investors need to know now.
When Deutsche Telekom publishes its second-quarter and first-half results on August 6, the market will be looking for specifics on how synergies between the European business and T-Mobile US are developing. A potential update to the full-year group guidance is also on the table, which could either validate the DZ Bank’s bullish thesis or force a reassessment of the 27 percent upside the analysts still see ahead.
Ad
Deutsche Telekom Stock: New Analysis - 29 July
Fresh Deutsche Telekom information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
