JPMorgan is betting that Deutsche Telekom’s share price has fallen well below its fundamental worth. Analyst Akhil Dattani reiterated an “Overweight” rating and a €40 price target on July 10, describing the current valuation as a “historic gap.” With the stock closing Friday at €26.15, that target implies a gain of more than 53% — a bold assertion for a stock that has spent much of 2026 in retreat.
The session did bring relief. Deutsche Telekom rallied 3.4% on Friday, pushing the weekly advance to 3.77%. Even so, the shares remain 6.17% lower since the start of the year and 14.54% below their level twelve months ago. The gap to the 52-week high of €34.35, set on February 27, stands at nearly 24%, while the 52-week low of €23.54 was touched as recently as June 30 — meaning the stock has already recovered about 11% from that floor.
Technical headwinds are hard to ignore. The stock trades 4.49% beneath its 50-day moving average of €27.38 and 8.84% below the 200-day average of €28.68. The relative strength index sits at a neutral 48.2, offering no directional signal. Market capitalisation stands at €123.56 billion.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
Dattani’s conviction rests partly on the group’s strategic pivot toward sovereign artificial intelligence. T-Systems, the business-to-business arm, has partnered with NVIDIA to launch an “Industrial AI Cloud” from a data centre in Munich. The facility will house up to 10,000 Blackwell GPUs, with plans first disclosed in November 2025 and formal operations beginning in February 2026. The pitch resonates with European companies that want an AI infrastructure compliant with local data-protection rules and independent of U.S. hyperscalers. According to market observers, roughly 20% of enterprises have already repatriated sensitive data from global clouds to local, sovereign environments — a trend that could give Deutsche Telekom a competitive edge against international rivals.
Across the Atlantic, the T-Mobile US subsidiary continues to generate cash for shareholders. A cash dividend of $1.02 per share was announced on June 15, payable on September 10 to holders of record on August 28. Yet analysts are cautiously watching competitive dynamics: Morgan Stanley reaffirmed T-Mobile US as a sector favourite but trimmed its long-term price target from $260 to $230, citing the potential market entry of rivals such as Starlink in the broadband space.
The next catalyst sits squarely in the earnings season ahead. Deutsche Telekom’s quarterly report will test whether JPMorgan’s thesis of deep undervaluation holds up operationally. For now, the stock faces an immediate technical test: the 50-day moving average near €27.40. A clean break above that level could draw further buyers and lend credibility to the bank’s ambitious target.
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