Deutsche Telekom Buy Calls Survive Target Cuts as SpaceX Threat and Soft Payout Take Their Toll

Deutsche Telekom's stock is holding its footing even as two major brokers trimmed their valuation marks and a fresh competitive worry emerged from across the Atlantic. The shares were up 0.5% at €26.31 on Friday, following a 0.7% advance to €26.36 in the prior session.

Goldman Sachs cut its price target to €36 from €38 on Friday while keeping a "Buy" rating, according to media reports. A day earlier, DZ Bank lowered its fair value to €33 from €35 and stuck with its "Kaufen" verdict. Neither house withdrew its recommendation — both simply marked down what they think the stock is worth.

Why the Targets Came Down

The reasons behind the reductions go beyond the quarterly print. Analysts flagged softer expectations for free cash flow, alongside risks and heightened volatility in the US business. On top of that, the bank pointed to possible competition from SpaceX — a factor media coverage framed as a drag on the share price.

A Quarter That Beat on the Top and Bottom Line

The operating numbers themselves were solid. For the third quarter of 2026, Deutsche Telekom reported organic revenue growth of 5.5% to €31.1 billion. Adjusted EBITDA AL climbed 8.0% organically to €12.2 billion, and adjusted net profit rose 12.7% to €3.0 billion.

Guidance got a lift too: the raised full-year outlook now points to around €47.6 billion in adjusted EBITDA AL for 2026 and roughly €20.1 billion in free cash flow AL.

Payout Plans Fall Short of Expectations

Shareholder returns are where the market found fault. The management board intends to propose a dividend of €1.10 per share, but Reuters reported on Thursday that the announced increase fell partly short of expectations — and the news agency grouped the unveiled share buyback into the same assessment. The stock couldn't hold its pre-market gains after the figures landed, at one point shedding more than 3%.

Buybacks are already underway. Deutsche Telekom confirmed on Thursday the purchase of roughly 5.22 million of its own shares under its running program, with the transactions executed from 2 through 6 November inclusive. The mandatory disclosure documents implementation of the existing scheme rather than any new volume. Separately, the board is planning buybacks of up to €2 billion for 2027 — distinct from the purchases already completed.

Another Year, Another Network Crown

Away from the capital markets, the company extended a run of operational bragging rights. Deutsche Telekom won the Computer BILD mobile network test for the 15th time in a row, earning an overall grade of "sehr gut (1.2)" and finishing ahead on 5G availability, speed and latency, according to the company.