Nomura Securities Reiterates a 'Buy' on Deutsche Telekom (DT); Incrementally More Positive After Road Show

Nomura Securities reiterates a 'Buy' on Deutsche Telekom (NYSE: DT) price target of EUR10.50.

Analyst, Frederic Boulan, said, "Following a road show with the CEO and CFO post Q1 results last week, we reiterate our Buy rating on the stock with us becoming incrementally more positive on the company’s aim to maintain a clear focus on capital allocation. The sustainability of the dividend, which remains well covered, sets Deutsche Telekom apart from its large cap peers with management having made it clear that the payment of the dividend can continue at current levels while investing significantly in Germany (16% capex to sales), something that should come as a significant relief to some in the market who had become cautious about the pay-out. In addition to this, we continue to see DT as a relative Buy in the sector context given the business’ superior asset mix with a more stable macro and competitive backdrop, something which does not seem to be priced into the valuation with the shares trading on a 12.0% ‘12e FCFE yield, in line with the sector average."

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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