Investing.com -- HSBC downgraded Deutsche Telekom AG Na (ETR:DTEGn) to "hold" from "buy" on limited upside potential for T-Mobile US Inc (NASDAQ:TMUS) and increasing risks in the German broadband market.
The brokerage raised its price target on Deutsche Telekom (OTC:DTEGY) to 36 euros from 34 euros, reflecting a higher target for T-Mobile US at $270 from $260, but noted that valuation concerns and macro risks in Germany warrant a more cautious stance.
Deutsche Telekom has delivered a total return of 67.8% over the past year, largely driven by a 69.4% surge in T-Mobile US shares. However, HSBC said T-Mobile US appears fully valued after a significant re-rating, with its shares trading at an 18% premium to the S&P 500.
HSBC also highlighted emerging risks in Germany’s broadband market, where Deutsche Telekom faces competitive pressures, particularly from Vodafone’s pricing strategies. The brokerage warned that increasing pricing tension could weigh on sentiment and limit the potential for a re-rating of Deutsche Telekom’s non-U.S. business.
While Deutsche Telekom’s valuation remains undemanding, HSBC sees little scope for further upside in the absence of additional gains from T-Mobile US. The brokerage's revised target price implies no further upside from current levels.
Related Articles
HSBC downgrades T Mobile, Deutsche Telekom amid risks in broadband market
UAE GDP sees 3.8% growth in first nine months of 2024
Trump hails 'reclaiming' of Panama Canal after BlackRock-led group's deal to buy stake
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。