Nomura Securities Maintains a 'Buy' on Deutsche Telekom (DT) T-Mobile USA Remains A Problem

April 4, 2012 9:30 AM EDT
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Price: $46.93 +0.43%

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Nomura Securities maintains a 'Buy' on Deutsche Telekom (NYSE: DT) price target of $10.50.

Analyst, Mike McCormack, said, "Yesterday we had the opportunity to host an investor dinner with T-Mobile USA Vice President of Investor Relations, Nils Paellmann. Overall, the meeting reinforced our view that the US wireless market is too competitive and is poised for incremental competitive pressures resulting from a renewed marketing effort from T-Mobile USA."

"T-Mobile USA remains Deutsche Telekom's (DT) number one problem. If we think DT’s refarming/LTE strategy makes a lot of sense, commercial momentum is unlikely to recover in the coming quarters without the iPhone. In the meantime, we don’t expect the market to give T-Mobile USA the benefit of the doubt on its brand relaunch in 3Q. Despite its US issues, we continue to see DT 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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