Deutsche Telekom Draws a Higher Barclays Target as Fibre Build-Out and Buybacks Set the Pace

Barclays raised its price target on Deutsche Telekom to EUR 33 from EUR 32 on Wednesday, keeping its "Overweight" rating intact, according to media reports. The move marks a more constructive stance than the one taken by Bank of America, which cut its own target to EUR 32 from EUR 36 on 9 November while reaffirming its buy recommendation.

Bank of America attributed the reduction to lower assumptions on cash flow. The report also linked the more cautious valuation to potential competition from SpaceX. Telekom CEO Tim Höttges has weighed in on that prospect himself: Reuters reported on 5 November that, in his assessment, investors were already pricing in a longer-term hit to profitability from a possible SpaceX entry into the US mobile market. Höttges said SpaceX could become a significant competitor, though satellite services alone would not be able to replace terrestrial mobile networks — a view aimed at future rivalry rather than any market entry that has already happened.

Capital Returns in the Spotlight

Buybacks remain a central plank of the equity story. Alongside its results, the board announced a share repurchase programme of up to EUR 2 billion for 2027. Its size fell short of expectations, according to dpa-AFX, which also pointed to the falling share price of US subsidiary T-Mobile US as a further drag on the stock at the time.

The existing programme, launched on 10 August, is still running. A mandatory disclosure on 9 November confirmed further purchases of the company's own shares during the 2–6 November period. In that week alone the group bought roughly 5.22 million shares, taking the total acquired since the programme began to around 49.4 million as of 6 November.

Two Fibre Fronts Open

On the network side, Deutsche Telekom launched fibre expansion in Worms-West and a subsidised build in Wismar on Thursday. The Worms-West project is designed to reach around 10,000 households and businesses, while Wismar accounts for 2,406 — both spanning private homes and commercial customers. Wismar will require more than 198 kilometres of fibre cable and 52 new network distributors, with completion expected by October 2029.

Mobile coverage brought its own accolade. In the network test run by IMTEST and zafaco, the company took first place among four German operators, earning an overall "very good" rating with a grade of 1.24. Measurements for the comparison were taken between 31 August and 27 September.

Loyalty Push and a Date for the Diary

On the customer side, the group announced changes to its Magenta Moments loyalty programme on Wednesday. "Magenta Wednesday" becomes a fixed weekly promotional day, complemented by offers and prize draws in the MeinMagenta app — an extension of the existing rewards scheme.

Investors will get their next set of hard numbers on 25 February 2027, when Deutsche Telekom is scheduled to publish results for the fourth quarter and the full 2026 financial year.