Deutsche Telekom: Buyback Blitz and Analyst Confidence Set the Stage for August 6

Deutsche Telekom ramps up share buybacks, with DZ Bank reaffirming a Buy rating and €35 target, citing T-Mobile US cash flow strength and fiber expansion.

The math is straightforward for Deutsche Telekom investors: fewer shares outstanding means more earnings per share, and the Bonn-based telecom giant is accelerating that arithmetic at a furious pace. Between July 20 and July 24, the company scooped up roughly 1.35 million of its own shares on the open market, pushing the total since the current buyback tranche began on July 1 past the 5 million mark. With CEO Timotheus Höttges having allocated up to €2 billion for capital returns in 2026, the message from management is unambiguous — they see the stock as undervalued at current levels.

That conviction got a fresh seal of approval from the DZ Bank on July 28. The analysts reaffirmed their "Buy" rating on Deutsche Telekom, trimming their fair value target only modestly from €37 to €35. At the stock's recent trading level of around €27.41, that still implies roughly 27% upside. The bank's reasoning hinges on the group's cash flow strength, particularly after T-Mobile US — the crown jewel in Deutsche Telekom's portfolio — raised its free cash flow guidance following a second-quarter earnings beat on July 23. The US subsidiary delivered earnings per share of $2.99, handily topping the $2.59 consensus estimate.

The DZ Bank's call carries an extra layer of nuance: it views the recent pullback in T-Mobile US shares as overdone. That assessment matters because the US unit's financial performance provides the firepower for Deutsche Telekom's buyback program and dividend policy. The stronger T-Mobile's cash generation, the more room the parent company has to reward shareholders without straining its balance sheet.

Back in Germany, the operational story is one of steady infrastructure build-out. Deutsche Telekom now reaches 13.6 million households and businesses with its pure fiber-optic (FTTH) network, which spans more than 890,000 kilometers of cable. That fiber footprint locks in a competitive moat in high-speed internet just as demand for bandwidth continues to climb, offering a buffer against the volatility that sometimes ripples across from the US mobile market.

The chart tells a more cautious tale. The stock has been defending its 50-day moving average of €27.09, recently trading at €27.41 — a hair above that technical line. The relative strength index sits at 56.6, suggesting neutral-to-slightly-positive momentum without any signs of overheating. The next major hurdle lies at the 200-day moving average of €28.63, a level that would mark a more definitive shift in trend. From the 52-week high of €34.35 set back in February, the shares remain roughly 20% off the peak.

All eyes now turn to Thursday, August 6, when Deutsche Telekom releases its full second-quarter and first-half report. Analysts will be looking for confirmation of the full-year EBITDA guidance of around €47.5 billion, along with updates on debt reduction progress and the planned dividend of €1.13 per share. The DZ Bank expects additional color on synergies between the European operations and T-Mobile US, and a potential refinement of the group's annual forecast. Until then, the buyback machine remains the market's primary defense against any downside pressure — and it shows no signs of slowing down.