Deutsche Telekom Stock: Robust Growth Fuels Positive Outlook

Deutsche Telekom's stock is nearing its 52-week high of €28.33, with analysts projecting a target price of €31.58. This optimistic forecast is bolstered by Moody's upgrading the company's outlook from stable to positive, citing strong performance in Germany and the United States. The telecom giant's solid cash flow and credit parameters have contributed to this positive assessment. Additionally, the company's technological advancements, including plans to phase out 2G networks by 2028 to enhance 4G and 5G services, demonstrate its commitment to innovation and improved mobile internet coverage.

T-Mobile US Exceeds Expectations

T-Mobile US, Deutsche Telekom's American subsidiary, reported an impressive net increase of 865,000 new contract customers in the third quarter, surpassing analyst predictions and outperforming competitors AT&T and Verizon combined. This success, attributed largely to the conversion of prepaid to contract plans, has led to an upward revision of T-Mobile US's 2024 forecast. The company now anticipates 5.6 to 5.8 million new contract customers and projects an adjusted operating profit (Core EBITDA) between $31.6 and $31.8 billion. This positive outlook has resonated with investors, as evidenced by a 3% increase in after-hours trading.