Deutsche Telekom Target Cut to 33 Euros by DZ Bank

DZ Bank said the group’s nine-month results were solid and its outlook had improved modestly, but those changes were not enough to offset the reduced value assigned to T-Mobile US in its model. That distinction matters for investors because Deutsche Telekom’s equity story is increasingly shaped by how the market prices the American subsidiary, which is the largest driver of the conglomerate’s sum-of-the-parts valuation.

T-Mobile US itself has been delivering strong account and ARPA growth, according to its Oct. 28 results release, with service revenue, profitability and EPS growth still running ahead of peers. The stock has also been relatively firm, closing at $169.08 on Nov. 10, above both its 50-day moving average and 200-day moving average, though still well below this year’s highs.

For Deutsche Telekom shareholders, the bank’s cut is a reminder that a healthy operating backdrop does not automatically translate into a higher parent-level valuation if the market rerates the U.S. stake. The shares have already drifted lower in Frankfurt, and the next catalyst is likely to come from either another update on T-Mobile US execution or further changes in how analysts value the transatlantic wireless asset.