Deutsche Telekom Recent sell-off leaves shares screening cheap. Coming months will be key to shaping sentiment

Research evidence excerpt

Deutsche Telekom Recent sell-off leaves shares screening cheap. Coming months will be key to shaping sentiment

J P M O R G A N Europe Equity Research

18 May 2026

Deutsche Telekom Overweight

DTEGn.DE, DTE GR

Recent sell-off leaves shares screening cheap. Coming Price (15 May 26):€27.68

months will be key to shaping sentiment Price Target (Dec-27):€40.00

DT shares are -19% from their March highs. This reflects mounting storm clouds, European Telecommunication

discussed in our Q1 preview (see here), which led us to call out the risk of such near- Services

term underperformance. Whilst visibility remains limited, DT now at least screens Akhil Dattani AC

cheap (2027E PE 10.5x) and more de-risked. Critically, we expect newsflow over the (44-20) 7134-4725

next few months to provide visibility on several key debates, and in turn shape akhil.dattani@jpmorgan.com

sentiment into H2. Focus areas include: (1) Verizon’s heavily anticipated Q2 tariff J.P. Morgan Securities plc

revamp, (2) The upcoming (2nd June) US AWS-3 spectrum auction in which Starlink Ankur Baheti, CFA

has applied to participate, and (3) Whether satellite operators as a whole start to (91-86) 5796-8820

ankur.baheti@jpmchase.com

progressively unveil broader future US wireless ambitions. The key remaining J.P. Morgan India Private Limited

unknown thereafter centres around reports that DT may be considering a full US Telecommunication Services

combination with TMUS – a highly complex deal that many investors seem opposed

Sebastiano C Petti

to, but which we are strategically sympathetic to.

(1-212) 622-8529

Updating estimates post Q1: Updating for yesterday’s Q1 results and FX, we nudge sebastiano.c.petti@jpmorgan.com

J.P. Morgan Securities LLC

up revenues 0.5% (US and Europe), leave EBITDA unchanged (US +0.5% pa,