Telekom's Polish Fibre Bet and Buyback Cadence Mask a Mixed Analyst Scorecard

Deutsche Telekom acquires Polish broadband firms for €1B, continues buybacks, expands fibre, despite Kepler downgrade and VoLTE flaw.

The German telecom incumbent is pressing ahead on multiple operational fronts even as its share price works through the fallout of a ratings downgrade. A roughly €1 billion acquisition in Poland, a steady stream of share repurchases, and a fresh push on domestic fibre rollouts are collectively painting a picture of a company that refuses to stand still — even when the market's mood turns cautious.

A Billion-Euro Bet on Polish Convergence

The centrepiece of the recent activity is the agreement, signed on 17 August, to acquire full ownership of Polish broadband operators Fiberhost and Inea from Macquarie Asset Management. The enterprise value sits at around €1 billion. Fiberhost brings fibre-optic networks to the table, while Inea operates as a regional broadband provider — together, they are expected to bolster the convergence strategy of T-Mobile Polska, the group's Polish subsidiary that aims to blend mobile and fixed-line services into a seamless offering.

The deal fits a broader pattern: rather than building fibre infrastructure organically in growth markets, the Telekom has shown a clear preference for buying scale where it can. Poland, historically more fragmented than the German core market, has become a testing ground for that approach.

Domestically, the infrastructure offensive continues as well. The company is expanding its fibre footprint in the Berlin districts of Steglitz and Lankwitz, and has been informing residents in the municipality of Elsteraue about upcoming construction work. These projects are part of a wider push to defend the group's position in the German fixed-line business.

Buyback Machine Keeps Running

Alongside the expansion drive, the share repurchase programme for 2026 remains firmly on track. Between 17 and 21 August, the company bought back just over 1.54 million of its own shares at a weighted average price of roughly €28.82. Since the programme began on 10 August, that brings the cumulative total to approximately 3.15 million shares acquired.

Buybacks of this kind reduce the number of outstanding shares and, all else being equal, support earnings per share — a signal that tends to carry extra weight when the stock is struggling to find momentum. The broader programme was previously expanded by up to €3 billion, taking its total volume to €5 billion, while management also lifted its free cash flow guidance to around €20 billion.

Analyst Divergence and a Modest Recovery

The stock closed Friday at €28.55, up 1.8 percent on the day and 1.7 percent above its post-downgrade level. The catalyst for the dip was a decision by Kepler Cheuvreux last Thursday to cut the shares to "Hold" from "Buy," citing limited short-term price catalysts for the second half and intensifying competition at the US subsidiary T-Mobile US.

But not everyone sees it that way. Zacks Investment Research came to the opposite conclusion on Saturday, upgrading the stock on the back of raised earnings estimates and a valuation that looks attractive relative to the sector.

The monthly picture depends on the window you choose. Over the past 30 days, the shares have gained 4.1 percent; on a rolling 12-month basis, they are down 9.0 percent. The stock remains 17 percent below its 52-week high of €34.35, reached on 27 February — a reminder that the recent rebound has yet to erase the longer-term weakness.

Security Flaw and the Numbers Behind the Story

Adding a layer of noise to the narrative, investigations this week uncovered a security vulnerability in VoLTE calls across the networks of both Deutsche Telekom and Telefónica. The flaw could allow device data such as IMEI numbers to be transmitted unencrypted to the calling party. There is no evidence so far that the vulnerability has been actively exploited, but the issue is likely to keep network operators busy in the weeks ahead.

For a more complete picture of the company's financial health, the second-quarter report published in late July remains the reference point. Group revenue rose 4.4 percent to €29.93 billion, while earnings per share slipped to €0.51 from €0.54 a year earlier.

What's Next on the Calendar

Investors now have two dates circled. On 8 September, the company will present its AI strategy for enterprise customers at the "Digital X" event in Cologne — a chance to see how the Telekom plans to position its digital business beyond the traditional network operations. Then, on 5 November, third-quarter results will show whether the operational momentum from the Polish acquisition and domestic fibre expansion is translating into the numbers.