Sprint takeover boosts Telekom course

The Telekom share historically represents a stock market debacle. Only a few private investors have noticed that it has now become a favorite of analysts. What else was important on the stock exchange this week?

Telekom logo on a smartphone, photo from 2015

Dhe T-Share still stands for the big hara-kiri on the stock exchange in Germany. Once advertised as a popular share by Liebling Kreuzberg Manfred Krug, many Germans used the privatization of the state-owned company to enter the stock market and fell flat out with their investments.

Only a few investors have noticed that Deutsche Telekom is now, around twenty years after its rollercoaster debut, announced as the darling of analysts. Since the big crash at the beginning of the millennium, the price has been bobbing somewhere between 10 and 16 euros and has hardly ever ventured above the original issue price during this time.

The professional observers of the share see great potential in the takeover of the American competitor Sprint in particular; America’s business, which is already very important for the group, could grow even further as a result.

Large American investment banks such as Goldman Sachs and JP Morgan have therefore had the share on their favorites lists for months and still see plenty of potential in the current price level with price targets of 23 or 24 euros. This week, the Citibank analyst also upgraded the share from “Hold” to “Buy”, which then led to a surge in price. The magenta group went up by a good 9 percent. Even in the already extremely friendly Dax, that was an above-average performance.

DT. TELECOM

— (–)
  • 1T
  • 1W
  • 3M
  • 1J
  • 3J
  • 5J

To the detailed view

ECB President Christine Lagarde also contributed to the party mood among investors. After Thursday’s interest rate meeting, she made it clear that the cheap money policy will not end for the time being. On the contrary, the central bank’s bond purchases are to be accelerated again. This means that the inflow of capital into the stock markets is likely to continue for the time being. These prospects drove the Dax to the highest level in its history. And even if he couldn’t keep up the 14,590 points until the end of the week, he stayed at a high level on Friday. The German stock market has thus finally entered the record hunt that has been going on on Wall Street for a long time. The Dow Jones broke the previous day’s record every day this week.