Nomura Securities Reiterates a 'Buy' on Deutsche Telekom (DT); Q1 Preview
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Price: $49.14 -3.17%
Rating Summary:
30 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
30 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities reiterates a 'Buy' on Deutsche Telekom (NYSE: DT) price target of $10.50.
Analyst, Frederic Boulan, said, "We present a Q1 preview of T-Mobile USA which remains DT's number one problem, in our view. We expect contract trends and the top line to remain under pressure: we forecast service revenue to worsen in Q1 to -5.5% from -4.4% in Q4. If we believe that DT’s refarming/LTE strategy makes a lot of sense, commercial momentum is unlikely to recover in the coming quarters without the iPhone and the market is unlikely to give T-Mobile USA the benefit of the doubt with regard to its commercial relaunch in Q3. Overall we expect US wireless Q1 earnings likely to be a mixed bag, with Post-paid subscriber losses and a snap-back in margin trends in 1Q12. A positive pricing environment could become a tailwind with post-paid ARPU profiles steadily improving. For DT overall, despite its US issues (17% of EV), we continue to see the stock as a relative Buy in a sector context, with a superior asset mix, a secure dividend yield and an attractive valuation despite higher domestic visibility."
For an analyst ratings summary and ratings history on Deutsche Telekom click here. For more ratings news on Deutsche Telekom click here.
Shares of Deutsche Telekom closed at $11.83 yesterday.
Analyst, Frederic Boulan, said, "We present a Q1 preview of T-Mobile USA which remains DT's number one problem, in our view. We expect contract trends and the top line to remain under pressure: we forecast service revenue to worsen in Q1 to -5.5% from -4.4% in Q4. If we believe that DT’s refarming/LTE strategy makes a lot of sense, commercial momentum is unlikely to recover in the coming quarters without the iPhone and the market is unlikely to give T-Mobile USA the benefit of the doubt with regard to its commercial relaunch in Q3. Overall we expect US wireless Q1 earnings likely to be a mixed bag, with Post-paid subscriber losses and a snap-back in margin trends in 1Q12. A positive pricing environment could become a tailwind with post-paid ARPU profiles steadily improving. For DT overall, despite its US issues (17% of EV), we continue to see the stock as a relative Buy in a sector context, with a superior asset mix, a secure dividend yield and an attractive valuation despite higher domestic visibility."
For an analyst ratings summary and ratings history on Deutsche Telekom click here. For more ratings news on Deutsche Telekom click here.
Shares of Deutsche Telekom closed at $11.83 yesterday.
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