Citi upgrades target price for Deutsche Telekom, retains 'buy' rating

Analysts at Citi lifted their target price for phone operator Deutsche Telekom from €14.00 to €17.50, while retaining a ‘buy’ rating.

Citi raised its target price due to higher multiples for Germany to reflecting trading levels and a higher value of T-Mobile USA, which DT has a stake in.

An increase in forecast revenue by 4.4% for 2015 and 6% in 2016 was driven by the strong dollar to euro exchange rate and better trends in Germany, Citi analysts said.

“We see DT’s outlook as depending upon continuing its strong recovery in in the US, where its fortunes have been boosted by heavy network and commercial investment, as well as progress with superfast broadband in Germany and all-IP in Germany and across Europe,” Citi said in a note.

Shares in DT fell by 2.55% to €15.05 at 16.40 on Monday.