Nomura Securities Maintains a 'Buy' on Deutsche Telekom (DTEGY); Attractive Risk/Reward on U.S. Scenarios
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Price: $23.26 -0.09%
Rating Summary:
2 Buy, 1 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 10 | New: 14
Rating Summary:
2 Buy, 1 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 10 | New: 14
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Nomura Securities maintains a 'Buy' on Deutsche Telekom (OTC: DTEGY) price target of EUR11.80
Nomura analyst, James Britton, said, "Shares have underperformed the SXKP by 12% over the past three months mainly as a result of the DoJ’s proposed suit against the AT&T (NYSE: T) / T-Mobile USA merger. The initial hearing is set for 21 September and anything other than confirmation of an end to negotiations will tacitly signal that negotiations are ongoing and that there is real potential for concessions to overcome the DoJ’s resistance to the deal. Company fundamentals remain strong, which should continue to outperform in 2012 given stable competition, a lack of regulation and an absence of austerity. We regard the valuation as also attractive; we believe that the current share price is discounting no likelihood of deal success and if you were to back out the deal, it would leave the stock trading on 4.3x ’12E EV/EBITDA vs large cap peers on 4.8x."
For more ratings news on Deutsche Telekom click here and for the rating history of Deutsche Telekom click here.
Shares of Deutsche Telekom closed at $11.47 yesterday.
Nomura analyst, James Britton, said, "Shares have underperformed the SXKP by 12% over the past three months mainly as a result of the DoJ’s proposed suit against the AT&T (NYSE: T) / T-Mobile USA merger. The initial hearing is set for 21 September and anything other than confirmation of an end to negotiations will tacitly signal that negotiations are ongoing and that there is real potential for concessions to overcome the DoJ’s resistance to the deal. Company fundamentals remain strong, which should continue to outperform in 2012 given stable competition, a lack of regulation and an absence of austerity. We regard the valuation as also attractive; we believe that the current share price is discounting no likelihood of deal success and if you were to back out the deal, it would leave the stock trading on 4.3x ’12E EV/EBITDA vs large cap peers on 4.8x."
For more ratings news on Deutsche Telekom click here and for the rating history of Deutsche Telekom click here.
Shares of Deutsche Telekom closed at $11.47 yesterday.
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