Goldman Sachs Raises the Bar for Deutsche Telekom

A wave of positive analyst sentiment is building for Deutsche Telekom, Europe’s largest telecommunications group, fueled primarily by the outstanding performance of its U.S. subsidiary. The company’s strong operational results have compelled several major investment banks to revise their valuation models upward.

Strong U.S. Performance Drives Upgrades

The primary engine for this renewed confidence is T-Mobile US. Contributing more than half of the group’s total revenue, the American unit has recently reported robust subscriber growth alongside rising average revenue per user. This positive momentum led Goldman Sachs analyst Andrew Lee to increase his operational estimates for the parent company. Consequently, Goldman Sachs has significantly raised its price target for Deutsche Telekom to 42 euros while maintaining a “Buy” rating. The firm also continues to list the stock among its most compelling investment ideas.

This bullish stance is echoed by other financial institutions, which have issued similarly optimistic assessments:
* Barclays maintains a “Buy” recommendation with a 39.50 euro price target.
* Berenberg also rates the stock a “Buy,” setting a target of 35.20 euros.
* The broader market consensus, based on estimates from 19 analysts, points to an average price target of 37.48 euros.

Should investors sell immediately? Or is it worth buying Deutsche Telekom?

Capital Returns and Strategic Moves Provide Support

Beyond analyst commentary, concrete capital allocation measures are bolstering investor appeal. A proposal to increase the dividend by eleven percent to 1.00 euro per share is scheduled for a vote at the Annual General Meeting on April 1, 2026. Based on the recent closing price of 32.15 euros, this represents an attractive yield.

This shareholder return is complemented by an ongoing share buyback program valued at two billion euros. The first tranche of this program, worth 550 million euros, is expected to be completed by the end of this month. Strategically, the recently announced partnership with SpaceX offers a long-term growth perspective. Starting in 2028, the Bonn-based conglomerate plans to offer satellite-based mobile connectivity via Starlink in ten European countries.

Ambitious Operational Targets for 2026

Management has set a high bar for the current fiscal year. For 2026, the company is targeting an adjusted EBITDA of 47.4 billion euros, a figure that exceeds current market expectations. Following a solid share price gain of 15.36 percent since the start of the year, the focus now shifts to the operational execution required to meet this forecast. The next significant update will come on May 13, when the group releases its financial results for the first quarter.