FRANKFURT (dpa-AFX) - Deutsche Telekom failed to convince investors on the stock market with its business figures on Friday. As one of the biggest losers on the DAX, the share fell by almost three percent at times, dropping to its lowest level since the end of 2023. Berenberg expert Usman Ghazi spoke of "a number of errors of beauty" in the final quarter of the Bonn-based telecommunications group. Several analysts criticized in particular that the operating result, excluding the contributions of the US subsidiary, was somewhat weaker than expected at the end of the year.

For the year as a whole, however, Deutsche Telekom posted a jump in profits despite a decline in sales because it had sold its majority stake in the radio tower business.

In January, the share price had climbed to its highest level since 2001 at 23.40 euros. After a subsequent interim low in mid-February, the share price had recently started to rise again, but this phase has now ended for the time being with the current price losses shortly before the weekend. With the setback, the share price is struggling with the 100-day line again for the first time since October, which is considered by stock market experts to be an indicator of the medium to longer-term trend. At midday on Friday, the share was still down two and a half percent at EUR 21.79.

Meanwhile, Berenberg expert Ghazi listed the somewhat weaker than expected service revenues in the German business as a minor sticking point. The industry expert was also not satisfied with the Group's free cash flow. According to Ghazi, the slight shortfall in the operating result outside the USA was due to the slight fall in real estate income at Group headquarters. Emmet Kelly from the US bank Morgan Stanley added that the costs of the head office had also risen slightly.

All in all, however, the analysts were quite satisfied and confirmed their positive ratings for the share. This included Georgios Ierodiaconou from Citigroup, who assessed the financial targets as reassuring, especially as the company normally exceeds expectations. Deutsche Telekom CEO Tim Hottges wants to significantly increase operating profit and free cash flow this year.

Against this backdrop, UBS analyst Polo Tang considers Telekom shares to be favorable. Expected positive developments such as the doubling of free cash flow by the end of 2024 as a result of the Sprint merger are not yet priced in./tav/ngu/mis