Deutsche Telekom Analysts Diverge: Barclays Raises Target to EUR 33 as Goldman and DZ Bank Trim Theirs

Two contrasting broker moves landed on Deutsche Telekom this week, underlining how the market is still working through the group's latest quarterly update. Barclays lifted its price target to EUR 33 from EUR 32 while reaffirming its "Overweight" rating, a step that trading coverage linked to a positive move in the shares. On the other side of the ledger, Goldman Sachs cut its target to EUR 36 from EUR 38 on Friday, though it kept its buy recommendation intact. DZ Bank followed suit on 5 November, lowering its fair value to EUR 33 from EUR 35 while leaving its "Kaufen" (buy) rating in place.

Guidance Raised, but Buyback Disappoints

The split in targets follows the group's decision roughly a week ago to raise its full-year outlook alongside quarterly results. For 2026, Deutsche Telekom now expects adjusted EBITDA AL of around EUR 47.6 billion and free cash flow AL of roughly EUR 20.1 billion. Management also intends to propose a dividend of EUR 1.10 per share.

Operationally, the third quarter of 2026 showed organic revenue growth of 5.5% to EUR 31.1 billion. Adjusted EBITDA AL climbed 8.0% on an organic basis to EUR 12.2 billion, while adjusted net profit rose 12.7% to EUR 3.0 billion.

What took the shine off the numbers, according to dpa-AFX, was the scale of the share buyback announced for 2027. At up to EUR 2 billion, the program fell short of market expectations — a point echoed in media coverage of the post-results reaction. The news agency also flagged pressure on T-Mobile US from SpaceX's entry into mobile frequencies as a second drag on sentiment.

Loyalty Push and an AI Side Bet

Away from the analyst chatter, Deutsche Telekom is pressing ahead on the customer front. It announced an expansion of its Magenta Moments loyalty program, turning "Magenta Wednesday" into a weekly promotional day with offers and prize draws hosted in the MeinMagenta app. The move gives the program a fixed weekly slot around which the company can bundle customer perks.

On the technology side, T-Systems and Sparxity signed a letter of intent on 3 November to collaborate on energy-efficient AI computing hardware. Under the plans, the technology would be integrated into Telekom data centers, with the next generation of Sparxity chips slated for rollout in 2028.