Deutsche Bank has adjusted its outlook on Deutsche Telekom (DTE:GR) (OTC: OTC:DTEGY), raising its price target to €33.00 from the previous €32.00.
The firm continues to endorse a Buy rating on the stock. The revision reflects a positive view on the company's performance and potential, particularly in light of its year-to-date total shareholder return of 26%, half of which was gained in the third quarter.
Deutsche Telekom's U.S. operations, through its subsidiary T-Mobile US (NASDAQ:TMUS), have seen a significant 31% increase. However, the analyst noted that the valuation of Deutsche Telekom's business excluding the U.S. remains relatively low.
The upcoming Capital Markets Day (CMD) is seen as an opportunity for the company to provide clarity on its capital return strategy, which could include dividends and buybacks as major tools to benefit shareholders.
The analyst's commentary suggests that while Deutsche Telekom is a popular stock and expectations are high, particularly because T-Mobile US has already provided guidance, there is still room for material upside.
The company's consistent performance and potential increased cash deployment to stockholders are cited as reasons for the raised price target.
The analyst anticipates that any potential pullback in stock price could present a buying opportunity, indicating a continued bullish stance on the company.
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