Deutsche Telekom Hits 52-Week Low as T-Mobile Buyout Fears Trump Upgraded Outlook and Buyback
23.06.2026 - 12:11:00 | boerse-global.de
Deutsche Telekom's shares have tumbled to a 52-week trough, even as the Bonn-based telecoms giant flashes some of its brightest fundamental signals in years. The disconnect between a soaring operational trajectory and a sinking stock price has never been starker, with a fresh round of speculation about a full takeover of its US subsidiary rattling investors.
The turmoil was triggered by a Wall Street Journal report that CEO Tim Höttges is weighing a radical move: buying out the remaining minority stakeholders in T-Mobile US to fully absorb the cash cow that now delivers roughly two-thirds of group revenue. While the logic — slashing costs and freeing up capital for US fibre expansion — makes strategic sense, equity markets are balking at the likely price tag. Investors fear a surge in debt or potential dilution, and the minority holders themselves have long viewed the less profitable European core with scepticism.
The stock touched €25.71 on Monday, its weakest level in a year, before closing at €26.15. The price now sits nearly 24% below February's annual high. Technical indicators underscore the severity of the sell-off: the Relative Strength Index has plunged to 29.2, pushing deep into oversold territory after hovering around 35 just days earlier.
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None of this, however, reflects what is happening inside the company. The management has lifted its guidance for adjusted operating profit, now targeting approximately €47.5 billion for 2026. Rating agency Fitch chimed in with an upgrade to 'A-' on Monday, citing the improved business mix and the growing weight of T-Mobile US. At the same time, the group's capital return programme is in full swing — last week alone it bought back another 1.65 million of its own shares, bringing the total since April to roughly 17 million.
On the ground, Deutsche Telekom continues to expand its mobile network, adding new sites across several German regions to meet surging data demand. These investments underpin the long-term outlook, which includes a planned excess cash flow of €15 billion by 2027.
Analysts remain broadly constructive. The consensus price target stands at around €38, implying more than 40% upside from current levels. A steady stream of cash from across the Atlantic also provides ballast: T-Mobile US is due to pay its confirmed quarterly dividend of $1.02 per share in September, and as the majority owner, Deutsche Telekom will pocket a sizeable portion to fund its own dividend obligations and investment plans.
For now, market sentiment is dictated by deal anxiety rather than operational realities. The question is whether the board will pull the trigger on a full T-Mobile integration — and whether the stock has already priced in the worst-case scenario.
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