Fitch Upgrade to A- Fails to Lift Deutsche Telekom as T-Mobile Integration Talk Weighs
24.06.2026 - 05:55:36 | boerse-global.de
An odd disconnect is playing out at Deutsche Telekom. The company just received a credit-rating upgrade from Fitch, continues to buy back its own stock, and delivered strong first-quarter results — yet the shares languish near their 52-week low. The culprit: a single Wall Street Journal report that has cast a long shadow over the stock since early June.
A Vote of Confidence From Fitch
Fitch raised Deutsche Telekom’s long-term credit rating to “A-” from “BBB+”, assigning a stable outlook. The agency cited the group’s sharply improved operating profile, driven overwhelmingly by its US subsidiary T-Mobile US. That unit will pay a quarterly dividend of $1.02 per share in September, directly boosting the parent company’s liquidity. Management is targeting a cumulative excess free cash flow of roughly €15 billion through 2027, providing ample room to maintain its shareholder-friendly policies.
Buyback Machine Grinds On
The company has been aggressively supporting its stock price through a buyback programme running since early April. In the week ending June 19, Deutsche Telekom repurchased over 1.6 million shares at an average price of about €27.30, spending approximately €45 million. That followed a similar pace in the prior week, when 1.6 million shares were bought at an average of €27.90 between June 8 and 12. Since the programme began, the group has snapped up more than 16.9 million of its own shares. The current second tranche, with a volume of up to €550 million, runs until the end of June and is part of a broader buyback authorisation worth up to €2 billion through 2026.
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The WSJ Shadow
Despite this artillery, the share price remains under pressure. On June 11, the Wall Street Journal reported that Deutsche Telekom is exploring a multinational holding company structure that would effectively fold its US unit into the parent — modelled on the Linde-Praxair merger with dual listings in the United States and Europe. The discussions were described as early-stage, requiring political backing and far from certain. Deutsche Telekom declined to comment. Investors have taken fright: the stock closed at €26.40 on Tuesday, down roughly 23% from its 52-week high of €34.35, and the Relative Strength Index has dropped to 33.1, deep in oversold territory.
Solid Fundamentals, Ignored
Meanwhile, the underlying operating performance tells a different story. In the first quarter of 2026, revenue grew organically by 4.7% to €29.9 billion, and adjusted EBITDA AL jumped 7.5% to €11.5 billion. Management promptly raised its full-year guidance: adjusted EBITDA AL of around €47.5 billion and free cash flow after leasing of more than €19.8 billion. Labour relations also improved — union ver.di approved a new contract covering roughly 60,000 employees, delivering an 8.5% wage increase over 33 months and a guarantee of no compulsory redundancies until the end of 2028. MagentaTV posted record viewership during the FIFA World Cup 2026, attracting more than 6.5 million viewers for group-stage matches and generating twice as many subscriptions as during the home European Championship.
What Lies Ahead
None of that has shaken the M&A overhang. Deutsche Telekom is slated to report second-quarter numbers on August 6, and until then the restructuring question is likely to dominate sentiment. Analysts still pencil in a median price target of €38 for the stock, but the market is waiting for clarity before giving the shares credit for a rating upgrade, a rising cash pile, and an active buyback.
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